State-owned Punjab National Bank Tuesday said it has hiked the benchmark lending rate by 5 basis points across tenors from November 1 that will make retail loans costlier for customers.

The marginal cost of funds based lending rate (MCLR) has been revised with effect from November 1, 2018, the bank said in a regulatory filing.

The benchmark one-year MCLR rate -- on which most of the retail loans are based--stands increased to 8.50 per cent.

For other tenors, three-year loan will come at a rate of 8.7 per cent, for six-month, it will attract the interest of 8.45 per cent and for three months it would be at 8.25 per cent.

One-month and overnight tenor loans will be priced at 8.15 per cent each.

The MCLR mechanism was introduced into the banking system in April 2016 as an alternative to the base rate, below which banks cannot lend, for new borrowers.

MCLR is calculated on the marginal cost of borrowing and return on net worth for banks.