HDFC Bank, IDFC First hike MCLR

With effect from August 8, HDFC Bank, the biggest private sector lender in the nation, increased its marginal cost of funds-based lending rate (MCLR) by 5 to 10 basis points (bps) across loan tenors. The benchmark repo rate was increased by another 50 basis points to 5.40% last week by the six-member monetary policy committee (MPC), which also raised interest rates.

As a result, HDFC Bank’s overnight and one-month MCLR is now 7.80%; the three-month and six-month MCLRs are 7.85%, 8.10%, 8.20%, and 8.30%; and the one-year and three-year MCLRs are 8.10% and 8.10%, respectively.

With effect from August 8, IDFC First Bank, another private sector lender, increased its MCLR by 5 to 15 basis points across all loan tenors. Its MCLR for the overnight and one-month periods is currently 8%; for the three-month and six-month periods, it is 8.25%; and for the one year, it is 8.95%.

Canara Bank, a public sector lender, increased its MCLR last week across all loan tenors by 5 to 15 basis points, bringing the rate for overnight and one-month loans to 6.80%. The current three-month, six-month, and one-year MCLRs are 7.10%, 7.60%, and 7.65%, respectively.

Following the MPC’s rate increase last week, the majority of lenders have already increased their external benchmark-linked loan rates.