Private sector bank IndusInd Bank on Wednesday raised marginal cost of funds-based lending rates (MCLR) by 15 basis points (bps) to 25 bps across tenures. With this increase the bank’s one year MCLR stands at 9%, as per information on the lender’s website. The bank made a 25 bps increase in its one-year MCLR for June.
The increase in MCLR in June is steeper compared to the hikes announced by the bank in the previous months. The bank raised MCLR by 5 bps in March and April each while the bank raised lending rates by 20 bps in May following the 40 bps hike by the Reserve Bank of India in repo rate in an off-cycle meeting in the same month. Subsequently, the central bank raised the repo rate by 50 bps in a scheduled meeting in June.
Most banks have raised their MCLR, following the consecutive hikes in the repo rate as more rate hikes are expected in coming months. ICICI Bank, Kotak Mahindra Bank and HDFC Bank have raised their cost-based lending rates for June by 30 to 35 bps. ICICI Bank’s current one-year MCLR stands at 7.55% while that of HDFC Bank is at 7.85% same as Kotak Mahindra Bank. PSBs have also raised their MCLR. SBI has raised one-year MCLR 7.40% while Bank of Baroda and Union Bank have set one-year MCLR for June at 7.5% and 7.45%, respectively.