Mumbai: Bank of Baroda and Indian Overseas Bank have increased their marginal cost of fund-based lending rates (MCLR), following a hike in the interest rates on loans and deposits by their largest public sector peer SBI.
The latest hikes in the interest rates come days after the Reserve Bank of India (RBI) on February 8 increased the borrowing costs by 25 basis points (bps).
The RBI’s six-member Monetary Policy Committee had raised the benchmark repurchase or repo rate to 6.50 per cent in its latest bi-monthly policy review. This was the sixth straight increase in interest rates since May last year, and the cumulative hike now totals 250 bps. State-owned Bank of Baroda (BoB) has increased its MCLR by 5 bps across all tenors from February 12.
The bank has revised one-year MCLR to 8.55 per cent from 8.5 per cent. The overnight, one-month and three-month MCLRs stand at 7.9, 8.2 and 8.3 per cent, respectively, according to its website.
Another state-run lender Indian Overseas Bank (IOB) has raised its MCLR by up to 15 bps across all tenors.
Its one-year MCLR is up to 8.45 per cent from 8.30 per cent now. Similarly, one-month, three-month and six-month MCLRs are up by 15 bps to 7.9, 8.2 and 8.35 per cent, respectively, while its overnight, two-year and three-year MCLRs have been revised upwards by 10 bps.
Both the banks have not increased their deposit rates yet.
State Bank of India (SBI) on Wednesday increased the MCLR-linked loans by 10 bps across the overnight and up to three year category of loans — varying from 7.95 per cent to 8.70 per cent, effective February 15. The nation’s largest lender also increased deposit rates by 5-25 bps effective February 15.
With the revised rates, senior citizens will get 8.5 per cent on deposits of over five years, while others will get 5 bps more on three year funds and 25 bps on longer-term funds, according to the bank’s
website.