After SBI, PNB and ICICI Bank Increase Lending Rates

Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts

    After SBI increased it lending rate for the first time since the implementation of the new MCLR benchmark on Thursday, PNB and ICICI Bank have also followed suit with an MCLR hike of 15 basis points. 1bps is one-hundredth of a percentage point.

    After SBI, PNB and ICICI Bank Increase Lending Rates

    ICICI Bank's one-year MCLR has been upped to 8.3% with an hike by 10 bps while PNB has
    MCLR or marginal cost of lending rates is influenced by the market rates and any change in the cost of funds or bond yield hardening would automatically increase the cost for loan borrowers.

    Change in SBI's MCLR rate for different maturities

    Six-month MCLR of SBI has been increased to 8% with a hike of 10 bps.

    One-year MCLR has been hiked by the SBI to 8.15% with a hike of 20 basis points against the earlier 7.95%.

    Two-year MCLR now stands at 8.25% with a hike of 20 bps

    Three-year MCLR cost has now increased to 8.35% with an increase of 25 bps.

    Other banks including Axis, HDFC and IndusInd Bank have already begun hiking their cost of lending with the increase in bond yield.

    The hike of upto 50 basis points in the retail and bulk deposit rates has been as it is passed on to loan borrowers. But the interest of lower income groups and those seeking affordable housing with a home loan of upto Rs. 30 lakh shall be only marginally affected as the rate hike for them has just been nominal at 5 basis points.

    Read more about: lending rates loan mclr pnb icici bank
    Story first published: Friday, March 2, 2018, 12:59 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more