New Delhi: State bank of India (SBI), Kotak Mahindra Bank and Federal Bank are are also joined the latest in the list to revise their marginal cost of funds based lending rates (MCLRs) in besides hikes in repo-linked rates from October. Post hike in repo rate by the Reserve Bank of India (RBI) on September 30 by 50 basis points to 5.90 percent, banks raised their repo-linked lending rates by a similar margin.
Over time, they also raised the rates based on the marginal cost of funds. State Bank of India (SBI), which is the biggest bank in the country, changed the MCLR for the benchmark one-year tenor to 7.95 percent, which is 25 basis points higher than the old rate.
The new rate went into effect on October 15, 2022. SBI has also raised the MCLRs for loans with terms of two and three years from 7.90 percent and 8 percent to 8.15 percent and 8.25 percent, respectively.
Kotak Mahindra Bank said that the MCLR for different terms has been set between 7.70 percent and 8.95 percent as of October 16. Its one-year MCLR rate has been changed to 8.75 percent. Federal Bank, which is based in the south, said that its one-year MCLR on loans and advances has been changed to 8.70 percent as of October 16.
Some lenders, like Punjab National Bank, ICICI Bank, Yes Bank, HDFC Bank, and Bank of Baroda, have already raised their MCLR rates following RBI rate action.
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