SBI raises lending rates, HDFC Bank and BoB increase deposit rates

Moves follow RBI's 90-bp repo rate increase in a little over a month

A week after the Reserve Bank of India’s (RBI’s) six-member monetary policy committee (MPC) increased the repo rate – the rate at which it lends to commercial banks – by 50 basis points (bps), State Bank of India (SBI), the country’s largest lender, on Wednesday increased its marginal cost of funds-based lending rate (MCLR) by 20 basis points across all tenors, with immediate effect.

The country's largest private-sector lender, HDFC Bank, and public-sector lender Bank of Baroda increased the rates on their fixed deposits of under Rs 2 crore – by up to 25 bps and 40 bps, respectively –