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| Edited By: DNA Web Team |Source: DNA Web Desk |Updated: Oct 19, 2022, 02:36 PM IST
SBI, Kotak Mahindra Bank, and Federal Bank are the most recent peer lenders to increase their repo-linked rates as well as their marginal cost of funds-based lending rates (MCLRs) as of early October.
Banks increased their repo-linked lending rates by a similar amount when the Reserve Bank of India increased the repo rate by 50 basis points to 5.90% on September 30. They gradually increased the rates for funds-based lending as well.
The benchmark one-year tenor MCLR for the State Bank of India (SBI) has been changed to 7.95%, up 25 basis points from the prior rate, and is effective as of October 15.
The rate that most consumer loans are compared to is the MCLR for a one-year duration.
Additionally, SBI increased the two- and three-year tenor MCLRs from 7.90% and 8% to 8.15% and 8.25%, respectively.
With effect from October 16, the MCLR for various tenors has been established in the range of 7.70-8.95%, according to private sector lender Kotak Mahindra Bank. Its updated MCLR rate for one year is 8.75 percent.
South-based Federal Bank said its one-year MCLR on loans and advances has been revised to 8.70 per cent with effect from October 16.
Following the RBI rate action, lenders including Punjab National Bank, ICICI Bank, Yes Bank, HDFC Bank, and Bank of Baroda have already increased their MCLR rates.
In addition to the increase in MCLR rates, numerous lenders, including SBI, ICICI Bank, Punjab National Bank, Bank of India, and mortgage lenders also increased their repo rate-linked lending rates after the RBI increased the repo, or the rate at which it lends short-term money to banks, on September 30.
On September 17, private sector lender Axis Bank last updated its MCLR.
In the meantime, Bank of Baroda increased interest rates on foreign currency non-resident (FCNR) deposits by up to 135 basis points across a range of currencies and maturity periods.
The new deposit rates went into effect on October 16 and will be in place through November 15, according to a release issued on Monday by Bank of Baroda.
The State Bank lowered the savings account interest rate on Saturday by a tiny 5 basis points, to 2.70 percent, with effect from October 15.
