State Bank of India hikes MCLR by 5 basis points across tenures from July 15

With effect from July 15, the largest public sector lender in the country State Bank of India (SBI) has increased the MCLR (marginal cost of funds-based lending rate) by 5 basis points (bps). According to information on SBI’s website, the MCLR-based rates will now range from 8 to 8.75 percent. 

The minimum rate at which the bank can grant loans to customers is represented by the MCLR. This hike comes after SBI raised the benchmark prime lending rate (BPLR) by 70 basis points on March 15.

The country’s biggest lender State Bank of India (SBI) on Friday increased the overnight MCLR rate to 8 percent from 7.95 percent. The rate for 1-month tenure has been hiked to 8.15 percent from 8.10 percent. For the 3-month MCLR is now 8.15 percent, which has been raised from 8.10 percent. The 6- month MCLR stands at 8.45 percent, which was 8.40 percent earlier. 

Further, the bank said in the release that for a 1-year period, the new rate will be increased to 8.55 percent against 8.50 percent. For a 2-year tenure, the new MCLR is 8.65 percent from 8.60 percent. The rate for 3-year tenure has been raised to 8.75 percent from 8.70 percent. 

Following the Reserve Bank of India’s (RBI) recent decision to hold the repo rate at 6.50 percent, which is the rate at which the RBI loans short-term cash to commercial banks, SBI has decided to increase lending rates.

Source: Media Reports