MCLR is the main determinant of cost of a loan for borrowers and an increase in MCLR normally means increase in interest payable by borrowers.
The hike has come just a couple of days before Reserve Bank of India (RBI) is to announce bi-monthly monetary policy.
The bank had previously increased MCLR in March 2018.
The hike comes just hours after Punjab National Bank (PNB) revised the MCLR for select tenors by 0.05-0.10 per cent, effective June 1.