The Reserve Bank of India (RBI) hiked the repo rate by 250 basis points to 6.50%, earlier this month. This has prompted several banks to increase their lending interest rates, making loans costlier for borrowers.
Repo rate is the rate at which the central bank lends money to commercial banks. Banks have revised their lending interest rates including the Marginal Cost of Funds Based Lending Rate (MCLR) and Revised Repo Based Lending Rate (RBLR).
Below is the list of banks that have increased their lending interest rates:
1.State Bank of India
The public sector lender has revised its MCLR by 10 basis points (bps) for all tenors with effect from February 15, 2023. The overnight MCLR has been hiked to 7.95% from 7.85% and the rate for one month tenor has also been increased from 8% to 8.10%. The MCLR for one year has been revised to 8.50%.
2.Canara Bank
Canara Bank also revised its MCLR by 5 bps from February 12. The overnight to one-month tenor MCLR is now 7.55%. The rate for a three-month loan is 7.90% and for a six-month loan is 8.30%. The MCLR for one year tenor is 8.50%.
3.Central Bank of India
The Central Bank of India has hiked the Revised Repo Based Lending Rate (RBLR) from 9.10% to 9.35% with effect from February 9. The bank's MCLR currently ranges between 7.50% for an overnight tenor to 8.15% for a one-year loan.
4.Punjab National Bank
The Punjab National Bank revised the Repo Linked Lending Rate (RLLR) by 25 basis points to 9% from 8.75%. The changes came into effect on February 9. The MCLR is 8% for a one-month loan and 8.40% for a one-year tenor.
5.HDFC Bank
The MCLR was revised by HDFC Bank on February 7. The interest rate for overnight and one-month tenors is 8.60% while the MCLR for six months, one-year, and three years tenors stands at 8.75%, 8.90%, and 9.10%, respectively.
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