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Private lender, IDFC First Bank hikes benchmark lending rate by 10 to 15 basis points on various tenures. The new rates of Marginal Cost of Funds based Lending Rate (MCLR) have come into effect from July 8, 2022.
From today, MCLR for 1-year tenure is at 8.80%, while for six months tenure the rate is at 8.50%.
Three-month MCLR is at 8.20%. While MCLR for one-month and overnight tenure is at 7.95% each.
As per the IDFC First Bank website, the home loan rate starts at 7.50% for salaried individuals. While the rate is 7.75% onwards on housing loans for self-employed.
Meanwhile, for personal loans, the interest rate starts from 10.49% and is maximum at 25%.
MCLR is the minimum lending rate below which banks are not allowed to lend. Replacing the base rate, which was the standard lending rate earlier, MCLR is closely connected to the existent deposit rates. It is derived based on the components such as the marginal cost of funds, operating costs, Cash Reserve Ratio (CRR), and Tenure Premium.
On BSE, at around 3.19 pm, IDFC First shares were trading at ₹33.80 apiece down by 1.3%. The shares have touched an intraday high of ₹34.65 apiece.
For the quarter ending June 30, 2022, IDFC First Bank recorded funded assets stood at ₹1,37,685 crore up by 21% yoy and 6.7% qoq. Customer deposits came in at ₹1,02,363 crore in Q1FY23 rising by 20.6% yoy and 9.8% qoq. CASA ratio stood at 50.3% as of June 30, 2022, as compared to 48.4% as of March 31, 2022.
The bank's retail business (Home loans, loans against property, vehicles, credit cards, and other personal credit) represents 65.7% of the overall funded assets as of June 30, 2022, and Commercial business (CV, Business Banking, etc.) constitutes 7.8% of the total funded assets.
In the quarter, the bank's mortgage business including home loans grew by 31.9% on a Y-o-Y basis and constituted 37.5% of the retail book. Infrastructure Loans de-grew by 35.0% YOY basis as of June 30, 2022. Infrastructure loans as a percentage of total funded assets were further reduced from 9.1% as of June 30, 2021, to 4.9% as of June 30, 2022.