Following other leading lenders in the country including State Bank of India (SBI), ICICI Bank and Bank of Baroda, HDFC increased its marginal cost of funds based lending rate or MCLR by 20 basis points across tenures. One basis point (1bps) is one-hundredth of a percentage point. Subsequent to the hike, bank's one-year MCLR is 8.6%.
The revised rates have come into force from September 7, 2018. For other tenures, the MCLR rate of HDFC stands in the range of 8.25-8.9%.
Earlier in this week, SBI, ICICI Bank and BOB hiked MCLR rate by 20, 15 and 5 bps, respectively. So, the one-year MCLR at SBI stands at 8.45% while for ICICI Bank and BOB, the revised MCLR rate is same at 8.55%.
The rise in MCLR will make home, auto and other loans costlier for customers.
And if experts are to go by, the aggressive pace at which banks both from the public and private space are hiking lending rates is indicative of the increase in cost of funds for banks as well as the ongoing impact of bad-loan crisis with which the banking system is saddled with.