The State Bank of India will raise its marginal cost of funds-based lending rates by 20 basis points across all tenures beginning Wednesday, June 15, according to information on the bank's website.
The bank's revised lending rates would be in the range of 7.05-7.70 percent. SBI has raised its marginal cost of funds-based lending rates for the third time in a row, following a rate hike in April for the first time since December 2018. The state-owned lender will also raise its external benchmark lending rate to 7.55 percent and its repo-linked lending rate to 7.15 percent, respectively.
The country's largest lender raised deposit rates after the Reserve Bank of India raised the repo rate by 50 basis points to 4.90 percent on June 8. In an off-cycle meeting in May, it raised the repo rate by 40 basis points. With effect from Wednesday, SBI will raise its base rate and retail prime lending rate by 45 basis points each. According to information on the lender's website, the base rate will be 8.00 percent and the prime lending rate would be 12.75 percent after the change.
The lending rate hiking cycle has now started to mirror the RBI's policy repo rate hikes. Many banks have already raised their lending rates, including ICICI Bank, HDFC Bank, Bank of Baroda, Union Bank of India, and Canara Bank.
SBI Research projects Indian economy to grow at 7.5-pc in 2022-23