IDBI Bank has announced an upward revision in its Marginal Cost of Funds-based Lending Rates by 05 bps to 10 bps across various tenors.
In a rising interest rate scenario, IDBI Bank on Monday announced an upward revision in its Marginal Cost of Funds-based Lending Rates (MCLR) by 05 bps to 10 bps across various tenors. The revised rates are applicable with effect from May 12, 2018.
It may be noted that various banks across the country have in recent weeks and months hiked their lending rates, including MCLR, marginally. For instance, a day after the RBI decided to stay put on the repo rate and lowered its inflation forecast for the year ahead last month in April, Bank of Baroda (BoB) raised its MCLR by 10 bps across various tenures. With that hike, while the bank’s one-year MCLR got increased to 8.4%, MCLRs for shorter tenures ranged between 7.9% and 8.25%.
Before that HDFC Bank had announced an upward revision in its MCLRs in March. The bank had increased its MCLR-based lending rates by 10 to 15 bps. With that hike, its 1, 2 and 3-year MCLRs stood revised at 8.30%, 8.45% and 8.60%, respectively, effective March 7, 2018, as against 8.20%, 8.30% and 8.50% earlier.
Earlier the nation’s other leading banks such as the State Bank of India (SBI), Punjab National Bank (PNB) and ICICI Bank had increased their MCLRs. For example, SBI had revised its MCLRs by up to 25 bps with effect from March 1, 2018. It had hiked its over night MCLR rate from 7.70% to 7.80%, while the six-month MCLR had been increased from 7.90% to 8.00%. Similarly, the one-year MCLR rate had been increased to 8.15% from 7.95% earlier, and the two-year MCLR rate went up to 8.25% from 8.05%. The three-year MCLR rate had also been hiked to 8.35% from 8.10% earlier.