The private sector lender HDFC Bank has raised the marginal cost of fund-based lending rate (MCLR) by up to 10 basis points (bps) and the new loan interest rates effective from Wednesday, December 7, 2022.
Now the overnight MCLR is 8.30 percent from 8.20 percent, an increase of 10 basis points (bps). The MCLR for one month tenor is 8.30 percent up from 8.25 percent, an increase of 5 bps, according to the bank’s official website.
HDFC bank’s three-month and six-month MCLR stands at 8.35 percent and 8.45 percent, respectively.
The one year MCLR, which is connected to many consumer loans, will now be 8.60 percent, the two year MCLR will be 8.70 percent from earlier 8.30 percent, and the three year will be 8.80 percent up from 8.75 percent.
Source: HDFC Bank website
Recently, state-owned Canara Bank also raised the marginal cost of funds-based lending rate (MCLR) and the new loan interest rates effective from Wednesday, December 7, 2022.
The lender hiked the one year MCLR by 5 bps to 8.15 percent, compared to the previous rate of 8.10 percent, according to the BSE regulatory filing.
Furthermore, the overnight and one-month MCLR is now at 7.30 percent from earlier 7.25 percent, the three-month and six-month MCLR stands at 7.60 percent and 8.05 percent, respectively.
ICICI Bank, Bank of India and Karur Vysaya are some other lenders that raised their MCLR in December.
Meanwhile, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) raised interest rates by 35 basis points on December 7. With this hike, banks may soon again raise their lending interest rates to match the RBI’s repo rate.