Axis Bank hikes MCLR by 5 bps across tenors, follows other lenders

Banks change lending policy to keep up with monetary policy committee's raising repo rate

Axis Bank has increased its marginal cost of funds-based lending rate (MCLR) by 5 basis points (bps) across tenors from August 18.

The private lender revised its lending rate after the central bank’s monetary policy committee (MPC) on August 5 increased benchmark policy rates by 50 bps earlier this month, taking the repo rate to 5.40.

According to Axis’s website, overnight and one-month MCLR stand at 7.85 per cent; three-month MCLR is at 7.95 per cent; six-month at 8 per cent; one-year at 8.05 per cent; two-year at 8.15 per cent; and three-year at 8.20 per cent.

Earlier this week,