In response to the recent rate hike by the Reserve Bank of India (RBI), a number of banks have raised their lending interest rates, which include Marginal Cost of Funds Based Lending Rate (MCLR) and Revised Repo Based Lending Rate (RBLR). Latest Lending Rates: SBI Axis Kotak and Other Banks Increase Interest Rates
The Reserve Bank of India (RBI) raised the repo rate by 25 basis points (bps) to 6.50% earlier this month, marking the highest level since 2018.
This move represents the sixth consecutive hike since May 2022, leading to a rise in lending interest rates by several banks, resulting in increased borrowing costs for customers.
Commercial banks borrow money from the Reserve Bank of India (RBI) at a rate known as the repo rate. In response to the recent hike in repo rate by the RBI, several banks have increased their lending interest rates, including Marginal Cost of Funds Based Lending Rate (MCLR) and Revised Repo Based Lending Rate (RBLR).
The following banks have raised their lending interest rates:
1. State Bank of India (SBI), the largest lender in the country, has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points (bps) across all tenures. This move will increase borrowing costs for customers seeking consumer loans such as home or auto loans. The revised rates were implemented on 15th February.
- Kotak Mahindra Bank has raised its lending rates by 5 basis points across tenures in response to the recent rate hike by the Reserve Bank of India (RBI). This move will lead to increased borrowing costs for customers seeking loans.
- Bank of Baroda, a public sector lender, has revised its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all tenors. The new rates came into effect on 12th February 2023.
- Axis Bank, a private lender, has increased its MCLR by 10 basis points across all tenors following the recent RBI rate hike. The new rates became effective from 19th February 2023.
- RBL Bank has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 20 basis points (bps) across all tenures, effective from 22nd February 2023. This move is likely to lead to an increase in interest rates for term loans linked to MCLR.
- Punjab National Bank (PNB), a public sector lender, has raised its Repo Linked Lending Rate (RLLR) by 25 basis points (bps) from 8.75% to 9%, effective from 9th February 2023. Recommended reading: Late Night Voting at Delhi Civic Body Descends into Chaos with Bottles and Ballot Boxes Thrown