Tuesday, May 21, 2024
HomeBusinessPNB, ICICI Bank, Bank of India Hike MCLRs By Up To 25...

PNB, ICICI Bank, Bank of India Hike MCLRs By Up To 25 bps; Loan EMIs To Go Up


As interest rates across the world, including, is increasing to control high inflation, the banks are also following the suit by hiking the interest rates on both loans and deposits. Several banks recently raised FD rates twice in a month. Now, three banks — PNB, ICICI Bank, Bank of India — have raised their marginal cost of funds-based lending rate (MCLR), effective December 1, on the basis of which interest rate of loans are decided. The hike is MCLR means hike in loan interest rates, thus higher equated-monthly instalments (EMIs) on home loan, personal loan and auto loan, among others.

Punjab National Bank’s Latest MCLR

State-owned Punjab National Bank (PNB) has raised the MCLR by 5 basis points (bps) across all tenures. A hundred basis points is equal to one percentage point. With the latest hike, its benchmark one-year MCLR now stands at 8.10 per cent, compared with 8.05 per cent earlier. Its six-month MCLR has now increased to 7.80 per cent from 7.75 per cent earlier.

ICICI Bank’s Latest MCLR

Similarly, major private sector bank ICICI Bank has also hiked its MCLR by up to 10 basis points across all tenures. Its overnight and one-month MCLRs have been increased from 8.05 per cent to 8.15 per cent now. Its six-month and one-year MCLRs have also been hiked by 10 bps to 8.35 per cent and 8.40 per cent, respectively. Its three-month MCLR has been increase from 8.25 per cent to 8.35 per cent.

Bank of India’s Latest MCLR

State-owned Bank of India has increased MCLR by 25 bps across all tenures, except one-year MCLR. Its benchmark one-year MCLR has been hiked by 20 bps from 7.95 per cent to 8.15 per cent. Bank of India’s six-month MCLR has increased from 7.65 per cent to 7.90 per cent. Its overnight, one-month, three-month, and three-year MCLRs have been hiked by 25 bps each to 7.30 per cent, 7.65 per cent, 7.70 per cent, and 8.35 per cent.

The Reserve Bank of India (RBI) has increased the key repo rate by 190 basis points in the back-to-back four hikes since May 2022, in order to control inflation. In May, the central bank conducted its off-cycle monetary policy review to hike the repo rate by 40 bps to control inflation. The next RBI’s Monetary Policy Committee meeting is expected to meet on December 5-7, 2022.

India’s retail inflation in October eased to a three-month low of 6.77 per cent. Inflation in rural areas in October 2022 cooled to 6.98 per cent, while that in urban areas softened to 6.50 per cent.

However, it was the 10th month that the Consumer Price Index (CPI)-based inflation remained above the RBI’s upper tolerance limit of 6 per cent. In September, India’s retail inflation had accelerated to a five-month high of 7.41 per cent. Before that, the retail inflation had stood at 7.04 per cent in May, 7.01 per cent in June, 6.71 per cent in July, and 7 per cent in August.

Read all the Latest Business News here



Source link

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Recent Comments