Ahead of RBI policy announcement, HDFC raises retail lending rate by 10 bps

Ahead of the Reserve Bank's monetary policy announcement, mortgage lender HDFC Monday increased its retail prime lending rate (RPLR) by 10 basis points with immediate effect.

The new rates vary from 8.80 to 9.05% on various slabs of loans. On Saturday, state-run Punjab National Bank had increased its benchmark lending rates or MCLR for short-term loans by up to 0.2%, effective Monday.With the revision, PNB's overnight marginal cost of funds based lending rate (MCLR) now stands at 8.2% as against 7.9%. The MCLR for a one-month tenor were raised to 8.10% from 8.05% earlier.

In the fourth monetary policy review to be announced on October 5, RBI is expected to raise repo rate by 25 bps. An increase in the repo rate will be driven mainly on concerns over inflation and a weak rupee.