Earlier on January 18, the lender upped marginal cost of lending rate by 5 basis points to 8.3%. This time around the bank raised MCLR by another 10 basis points to 8.4%. The pricing mechanism came into effect from April 1, 2016 and barring tenures below 3 months which was not changed, MCLR for 3-months, 6-months, 2-year and 3-year MCLR now stand at now 8.15%, 8.3%, 8.45% and 8.5%, respectively.

This has come in after HDFC also hiked its MCLR borrowing rate by 10 basis points to 8.2%.

Excluding some of the banks, in an environment where cost of borrowing is on the upwards side, banks have maintained bulk deposit rates at par with retail rates.

And as per the managing director of SBI, the recent rate hike in case of bulk deposits is unlikely to affect cost of borrowing significantly.

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