Day after State Bank of India, the country’s largest lender, hiked the interest rate by up to 10 basis points (bps) across the tenors, HDFC, PNB and ICICI Bank too on Friday followed with a hike of 10 bps each.
Day after State Bank of India, the country’s largest lender, hiked the interest rate by up to 10 basis points (bps) across the tenors, HDFC, PNB and ICICI Bank too on Friday followed with a hike of 10 bps each. While Retail Prime Lending Rate (RPLR) hike is effective June 1 for HDFC, Marginal Costs of Funds Based Lending Rate (MCLR) will be effective for ICICI Bank and PNB from June 2, respectively. “HDFC has increased its Retail Prime Lending Rate (RPLR), on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 10 basis points, with effect from June 2, 2018,” an exchange filing said.
The Punjab National Bank (PNB)’s overnight MCLR remains the same at 7.8 percent. The six-month MCLR has been risen by 5 basis points to 8.3 percent. The one-year MCLR has been hiked by 10 basis points to 8.4 percent. The three-year MCLR has been hiked by 10 basis points to 8.55 percent. The five-year MCLR surged by 10 basis points to 8.7 percent.
The overnight MCLR for ICICI Bank has been raised to 8.05 percent. The one-month MCLR also rose to 8.05 percent. The three month MCLR hit 8.1 percent. The six month MCLR now stands at 8.35 percent. The one year MCLR is now 8.4 percent.
Kotak Mahindra Bank also hiked MCRL by 10-20 bps across tenors effective June 1.
In case of SBI, those with a tenor of two to less than three years have been raised by five bps to 6.65 per cent. The hike for those between a year to less than two years is 25 bps, also to 6.65 per cent. A senior executive had said: “Money in these two buckets (tenors) has substantial share in banks’ deposit base. We would like to retain the amounts when competition for resources is intensifying.”
SBI had raised its rates on bulk deposits (above Rs 10 million) in the second half of the financial year. SBI deposits as a whole grew nearly 4.7 percent from Rs 25.85 trillion in March 2017 to nearly Rs 27.1 trillion as on end-March 2018. Domestic term deposits grew 1.8 per cent to around Rs 14.1 trillion.