MCLR Hike

RBI has raised policy repo rate by 250 basis points in stages to 6.5% in February 2023

Overnight and one-month MCLR rates are now at 8.50%, while the MCLR for three months is at 8.55%, ICICI Bank's website showed

Following the RBI MPC's repo rate hike earlier this month, many banks like Bank of Baroda, Bank of India, and Punjab National Bank have also hiked their key lending rates

State Bank of India has raised the marginal cost of funds-based lending rate (MCLR) by 15 basis points across tenors, making most consumer loans costlier for borrowers. The revised rates come into effect from November 15, 2022. The benchmark one-year MCLR, which is used as base for fixing most of home, auto and personal loans, has been raised by 10 basis points (bps) to 8.05 per cent, as against 7.95 per cent earlier. Likewise, the two-year and three-year MCLRs have been raised by 10 basis points each to 8.25 per cent and 8.35 per cent, respectively, SBI said in a notification on its website. Among others, one-month and three-month MCLRs have been increased by 15 basis points each to 7.75 per cent. The six-month MCLR is up by 15 basis points at 8.05 per cent while the overnight rate is higher by 10 basis points at 7.60 per cent.

State-owned Bank of Baroda on Thursday said it has increased its marginal cost of funds based lending rate by up to 15 basis points (bps) across tenors. The lender has approved the revision in marginal cost of funds based lending rate (MCLR) with effect from November 12, 2022, Bank of Baroda said in a regulatory filing. The benchmark one-year tenor MCLR has been raised by 10 basis points to 8.05 per cent. It is the rate at which most of the consumer loans such as personal, auto and home are tied to. Among others, the overnight rate has been raised to 7.25 per cent from 7.10 per cent earlier. The one, three and six-month MCLRs were raised by 10 basis points each to 7.70 per cent, 7.75 per cent and 7.90 per cent, respectively.

State-owned Bank of Maharashtra on Wednesday said it has increased its marginal cost of funds based lending rate (MCLR) for select tenor loans. The benchmark one-year MCLR, used to price most of consumer loans such as auto, personal and home, has been revised upwards to 7.90 per cent from 7.80 per cent, the lender said in a regulatory filing. The revised MCLR has come to effect from November 7, 2022. The one-month MCLR has been raised by 5 basis points to 7.50 per cent. Rates for other tenor loans like overnight, three and six months have been kept unchanged. Bank of Maharashtra stock traded at Rs 24.25 apiece on BSE, up by 4.08 per cent.

Private sector DCB Bank has revised upwards the marginal cost of funds-based lending rate by 27 basis points across tenors. The revised rates will come to effect from November 5, 2022, DCB Bank said in a regulatory filing on Friday. The benchmark one-year MCLR rate will be priced at 10.23 per cent from Saturday against the existing rate of 9.96 per cent. The one-year tenor MCLR is used to price most of the consumer loans, such as housing, auto and personal. The one, three and six-month tenor MCLRs will be 9.63 per cent, 9.79 per cent and 10.02 per cent, respectively. While the overnight tenor MCLR will be 9.58 per cent.

Central bank's MPC has cumulatively increased the repo rate by 190 bps since May

State-owned Bank of Maharashtra (BoM) on Monday raised the marginal cost of funds-based lending rates (MCLR) by 0.20 per cent or 20 basis points across tenors. The revision will make loans linked to MCLR benchmark costlier. The benchmark one-year MCLR will be 7.80 per cent from Monday, as against 7.60 per cent. The one-year rate is used to fix most consumer loans such as auto, personal and home loans. The overnight to six months tenor MCLRs are raised by 0.20 per cent each in the range of 7.30 to 7.70 per cent. The hike has been effected in their benchmark rate linked to the repo rate, which was increased by half a percentage point to 5.9 per cent last month by the Reserve Bank of India. Many banks led by State Bank of India (SBI) have already adjusted their lending rates after the Reserve Bank raised the benchmark interest rate to tame inflation.

RBI has increased benchmark policy rate by 140 bps cumulatively since May

Bank of Baroda and Indian Overseas Bank have raised their MCLR rates by up to 0.10 per cent, which will make most loans costlier for the customers. Indian Overseas Bank has revised upwards the MCLR rates by 0.10 per cent across tenors, making consumer loans costlier from Saturday. The benchmark 1-year tenor marginal cost of funds based lending rate (MCLR) has been revised to 7.75 per cent against the existing rate of 7.65 per cent. This will impact car, personal and home loans. The two and three-year MCLRs have been hiked by a similar margin to 7.80 per cent each. Among others, the overnight MCLR will cost 7.05 per cent, while one month at 7.15 per cent. The three and six-month MCLRs are up at 7.70 per cent each. The revised MCLRs will come into effect from September 10, 2022, Indian Overseas Bank said in a regulatory filing. Bank of Baroda's one-year MCLR will be priced at 7.80 per cent against 7.70 per cent, the bank said in a regulatory filing. The six-month MCLR will be up

Second rate hike in two months by lender after RBI's rate setting committee hiked benchmark repo rate by 50 bps to 5.4%; new MCLR at 7.90-8.40%

Foreign banks have raised it the most, median rate up 90 bps; just 20-bp rise for private banks

State-owned Indian Bank has revised the marginal cost of funds-based lending rates (MCLR) by 0.10 per cent across tenors from Saturday, which will make most of the consumer loans costlier. It has also revised the lending rates benchmarked on treasury bills. The Asset Liability Management Committee (ALCO) of the bank has reviewed the Benchmark Lending Rates and decided on an upward revision in MCLR and TBLR across various tenors, the lender said in a regulatory filing on Thursday. The benchmark one-year MCLR will be 7.75 per cent from September 3 against the existing rate of 7.65 per cent. The one-year rate is used to fix most consumer loans such as auto, personal and home loans. The overnight to six months tenor MCLRs are raised by 0.10 per cent each in the range of 6.95 to 7.60 per cent. Besides, the lender also revised the treasury bills benchmark lending rate (TBLR) in the range of 5.55 per cent to 6.20 per cent for various tenors.

SBI's MCLR rate for overnight to three-month has increased to 7.35 per cent from 7.15 per cent, while six-month MCLR has increased to 7.65 per cent from 7.45 per cent

SBI's overnight, one-month, and three-month MCLR stands at 7.35 per cent; six-month is at 7.65 per cent; one-year at 7.70 per cent; two-year at 7.90 per cent; and three-year MCLR stands at 8 per cent

The interest rate hike comes after the Reserve Bank of India's (RBI's) six-member monetary policy committee (MPC) raised the benchmark repo rate by another 50 bps to 5.40 per cent last week

Most banks have revised their external benchmark linked loan rates by 50 bps

The country's largest private sector lender HDFC Bank on Thursday announced a 0.20 per cent hike in its marginal cost of funding based lending rate across all tenors. This is the third such move by the lender in as many months since May, and takes the overall quantum of the rate hikes to 0.80 per cent. The RBI has hiked rates by a cumulative 0.90 per cent since shifting to rate tightening in the first week of May as it saw its core objective of inflation management getting under trouble. Analysts have been expecting more rate hikes from the central bank in the days ahead as price rise pressures are expected to continue. HDFC Bank said the one year MCLR, to which many consumer loans are pegged, will now be 8.05 per cent as against 7.85 per cent earlier. The overnight MCLR will be 7.70 per cent as against 7.50 per cent, while the three-year MCLR will be 8.25 per cent, as per the bank's website.

Among other MCLRs from overnight to six-month tenors, the new rates will be in the range of 6.75-7.45 per cent.