Soon after Reserve Bank of India (RBI) raised repo rates by 50 basis points (bps) for the third consecutive time on Aug 5, taking it to 5.4 percent – most commercial banks have been on a rate hike spree.
After Canara Bank, ICICI Bank, Punjab National Bank and Bank of Baroda, two more banks have joined the bandwagon of making their loans dearer.
HDFC Bank has raised its marginal cost of funds-based lending rate (MCLR) by 5 to 10 basis points (bps) across loan tenors.
Now, the overnight marginal cost of funds-based lending rates (MCLR) is 7.8 percent. The one-month MCLR is 7.8 percent, for 3-months, it is 7.85 percent, for six months, it is 7.95 percent, one-year MCLR is 8.10 percent, two-year MCLR is 8.2 percent and 3-year MCLR is 8.30 percent.
IDFC First Bank also revised its MCLR by 5-15 bps across loan tenors, starting Monday. Now, IDFC First Bank's MCLR is 8 percent for overnight and one month tenor, it rises to 8.25 percent for 3 month tenor, 8.6 percent for 6 month tenor and 8.95 percent for one year tenor.
Last week, Canara Bank raised its repo rate linked lending rate which is 8.3 percent w.e.f. August 7.
Besides, a number of lenders raised their external benchmark-linked loan rates, after the rate repo rate hike. Mortgage lender HDFC raised its benchmark lending rate by 25 basis points (bps).
ICICI Bank, Punjab National Bank, and Bank of Baroda raised their external benchmark linked loan rates by 50 bps immediately after the repo rate hike.
Now, ICICI Bank’s external benchmark lending rate is 9.10 percent per annum w.e.f. Aug 5; PNB’s repo linked lending rate is 7.9 percent w.e.f. August 6. For Bank of Baroda, repo linked lending rate is 7.95% w.e.f. August 6.