Several banks have announced marginal hikes in their MCLR or marginal cost of fund-based lending rates so far this month.
MCLR is the key rate below which a bank cannot lend.
State-run banks SBI (State Bank of India) and PNB (Punjab National Bank) and private sector lender ICICI Bank hiked MCLRs to the tune of 10 basis points (bps) in early June, days ahead of the Reserve Bank of India's bi-monthly policy statement.
Another PSU bank, Bank of Baroda, followed with an increase of five basis points in its MCLR.
After the central bank announced its first hike in repo rate in over four-and-a-half years on June 6, more banks - including Syndicate Bank, Oriental Bank of Commerce and Bank of India - raised their MCLR.Here are the MCLR of different banks, after the latest round of hikes:SBIICICI BankBoBPNBBoIOBCKotak Mahindra BankSyndicate BankIndian BankOvernight7.98.057.957.87.98.27.95881 month7.98.0587.958.28.358.158.058.13 months7.958.18.18.18.38.48.58.18.36 months8.18.358.38.38.458.68.68.38.41 year8.258.48.458.48.58.658.98.558.52 years8.358.93 years8.458.558.958.75 years8.78.95(Source: bank websites/regulatory filings)SBISBI has increased the lending rate by 10 basis points across all tenors up to three years, with effect from June 1.PNBPunjab National (PNB), the country's second largest lender, raised its MCLR for three-year and five-year tenors to 8.55 per cent and 8.7 per cent, respectively.
The rates took effect on June 1.ICICI BankICICI Bank too said it has raised five-year tenor MCLR by 10 bps to 8.70 per cent, with effect from June 1.
The bank also raised its MCLR by 10 bps in tenor of one year and three years.Syndicate BankSyndicate Bank revised its MCLR for one-year tenor loan higher by 5 bps, with effect from June 10.Oriental Bank of Commerce (OBC)Oriental Bank of Commerce raised its MCLR up to 15 basis points with effect from June 11.Kotak Mahindra BankBank of IndiaBank of India hiked the marginal cost based lending rate by 10 basis points each for various tenors, with effect from June 10.Bank of BarodaBank of Baroda's new MCLR across different tenors came into effect on June 7.Indian BankIndian Bank raised its MCLR by 10 basis points for loans with tenure of three months to five years, with effect from June 11.Currently, banks review their MCLR every month, a uniform methodology introduced from April 2016 to ensure fair interest rates to borrowers as well as banks.