Private sector lender HDFC Bank has raised marginal cost of funds-based lending rates (MCLR) by 10 basis points on Monday. MCLR is “the minimum interest rates a financial institution needs to charge for a specific loan.”
After this revision, the overnight MCLR and one-month MCLR stands at 7.80 per cent, according to the bank’s website. The three-month MCLR stands at 7.85 per cent whereas the 6-month MCLR is 7.95 per cent.
MCLR for loans with one-year, two-year and three-year tenors stands at 8.10 per cent, 8.20 per cent and 8.30 per cent respectively.
Prior to this, the private lender hiked MCLR rates in July. After this hike, overnight MCLR stood at 7.70 per cent whereas the one-year MCLR stood at 8.05 per cent. MCLR for loans with a tenor of three-years stood at 8.25 per cent.
The bank’s recent revision in MCLR rates comes after the Reserve Bank of India (RBI) hiked the repo rate by 50 basis points to 5.40 per cent on August 5.
RBI Governor Shaktikanta Das stated, “On the basis of an assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) as its meeting today (August 5, 2022) decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.40 per cent with immediate effect.”
The central bank hiked repo rate and decided to focus on the withdrawal of accommodative stance in the wake of rising inflation. Retail inflation has remained above 6 per cent for around six months now.
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