New Delhi: State-owned Punjab National Bank (PNB) on Wednesday raised its marginal cost of funds-based lending rate (MCLR) by 15 basis points or 0.15 per cent across all tenures, a move that will lead to an increase in EMIs for borrowers.
The new rates are effective from June 1, PNB said in a regulatory filing.
The revision follows an off-cycle rate increase by the Reserve Bank in May. The central bank hiked the repo rate — at which it lends short-term money to banks — by 0.40 per cent to 4.40 per cent.
With the revision, one-year MCLR has increased to 7.40 per cent from 7.25 per cent earlier.
Most of the loans are linked to the one-year MCLR rate.
The overnight, one-month and three-month MCLR rose by 15 basis points to 6.75 per cent, 6.80 per cent and 6.90 per cent, respectively, whereas the six-month MCLR increased to 7.10 per cent.
At the same time, three-year MCLR increased by 0.15 per cent to 7.70 per cent.
With the increase, EMIs will go up for those borrowers who have availed loans on MCLR.