Nearly a month after the banking regulator Reserve Bank of India (RBI) raised its repo rates on August 5 to 5.4 percent, a number of commercial banks have raised their marginal cost of funds-based lending rates (MCLR).
These banks are ICICI Bank, Bandhan Bank, Karnataka Bank and Indian Bank.
It is worth pointing that the RBI has raised the repo rate, or key short term lending rates, by a total of 140 basis points in the past three consecutive monetary policy committee (MPC) meetings.
ICICI Bank tends to revise its MCLR every month. In the latest revision w.e.f. Sept 1, overnight and one-month rates will be 7.75 percent. Three-month rates will be 7.8 percent, six-month rates will be 7.95 percent and one-year rates will be 8 per cent.
| Type | Rates (%) |
| Overnight | 7.75 |
| 1 month | 7.75 |
| 3 months | 7.8 |
| 6 months | 7.95 |
| One year | 8 |
(Source: ICICI Bank, rates w.e.f. Sept 1, 2022)
Bandhan Bank
Bandhan Bank also raised its MCLR starting last date of August. Now, the overnight, one month and 3-month MCLR will be 9.14 percent. The six-month MCLR will be 9.65 percent, one-year MCLR will be 9.95 percent, two-year MCLR will be 10.28 percent and 3-year lending rate will be 10.47 percent.
Karnataka Bank
At the same time, Karnataka Bank also raised its MCLR with effect from September 1. Now, the overnight and one-month MCL rates will be 8.35 and 8.45 percent, respectively.
Also, three-month MCLR will be 8.65 percent and six-month MCLR will be 8.80 percent. The one-year MCLR will be 9.10 percent.
| Type | Rate (%) |
| Overnight | 8.35 |
| 1-month | 8.45 |
| 3-month | 8.65 |
| 6-months | 8.80 |
| 1-year | 9.10 |
(Source: Karnataka Bank; rates are with effect from Sept 1, 2022)
Indian Bank
State-owned Indian Bank has revised the marginal cost of funds-based lending rates (MCLR) by 0.10 per cent across tenors from Saturday, which will make most of the consumer loans costlier.
The benchmark one-year MCLR will be 7.75 per cent from September 3 against the existing rate of 7.65 per cent. Besides, the lender also revised the treasury bills benchmark lending rate (TBLR) in the range of 5.55 per cent to 6.20 per cent for various tenors.
