SBI Raises Lending Rates Up To 8.45%, EMIs Set To Rise; PNB, ICICI Bank Follow
12 months ago NDTV 0
With effect from June 1, country’s largest lender State Bank of India (SBI) raised its marginal cost of funds based lending rates (MCLR) by 10 basis points across the tenors. The overnight MCLR has been raised to 7.9 per cent with effect from Friday. The one-month MCLR, likewise, has been raised to 7.9 per cent, 10 basis points higher than the earlier rate. The three month MCLR will now stand at 7.95 per cent. The State Bank of India (SBI’s) six-month MCLR has been increased to 8.1 percent. Similarly, the one-year MCLR, two-year MCLR and three-year MCLR have been raised to 8.25 per cent, 8.35 per cent and 8.45 per cent. The increase of SBI fixed deposit (FD) rates that took place on May 28 has led to the increase in lending rates. Check the SBI’s latest FD rates here.
MCLR is the minimum rate below which commercial banks cannot lend to its customers. The Reserve Bank of India (RBI), in April 2016 unveiled the concept of MCLR, which sought to remove much of the discretion commercial banks have to set lending rates.
SBI’s Marginal Cost of Funds Based Lending Rates with effect from June 1
|Tenor||Existing MCLR (In %)||Revised MCLR (In %)|
The last time, SBI, ICICI Bank and PNB raised their lending rates (MCLR) was in March this year. That time also, it had happened a day after the bank raised its fixed deposit (FD) interest rates.
Punjab National Bank’s MCLR with effect from June 1
The Punjab National Bank (PNB)’s overnight MCLR stays the same at 7.8 per cent. The one-month and three month MCLR will also remain the same at 7.95 per cent and 8.10 percent.
The PNB’s six -month MCLR has been risen by 5 basis points to 8.3 per cent. The one-year MCLR has been raised by 10 basis points to 8.4 per cent. The three-year MCLR has been raised by 10 basis points to 8.55 per cent. The five-year MCLR rose by 10 basis points to 8.7 percent. Even the base rate has been revised to 9.25 per cent from 9.15 per cent with effect from June 1.
ICICI Bank’s marginal cost of funds based lending rates (MCLR) With effect from June 1
Likewise, ICICI Bank’s overnight MCLR has been raised to 8.05 percent. The one-month MCLR also rose to 8.05 percent. The three month MCLR hit 8.1 per cent. The six month MCLR now stands at 8.35 per cent and one year MCLR is now 8.4 per cent.