The country's largest private sector lender HDFC Bank on Tuesday announced a 0.35-percentage-point hike in lending rate.
The hike, which comes a day ahead of the RBI's scheduled policy review, is the second such move from the lender in as many months, taking the cumulative hike to up to 60 basis points or 0.60 percentage point.
The RBI had surprised all with a 0.40-basis-point hike in key interest rates on May 4 to tame the inflation situation and is widely expected to follow up with further tightening of the policy on Wednesday.
HDFC Bank increased its Marginal Cost of funding based Lending Rate by 0.35 point from June 7, as per the new rate structure published on its website.
The one-year MCLR, on which a bulk of consumer loans are pegged, will be 7.85% after the newest review as against 7.50% earlier.
The overnight MCLR will be 7.50% against 7.15%, while the three-year MCLR will be 8.05% compared to 7.70%.
It can be noted that the rate hikes come at a time when credit growth is not very high and banks are keen to accelerate on the same. There have been hikes in deposit rates as well, which have preceded the lending rate hikes, along with the change in the policy environment.
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