The State Bank raised its lending rates by 20 basis points to 8(point)15 per cent, with immediate effect, setting the tone for the industry to follow suit. This is likely to make home and car loans costlier. This is the first lending revision by the bank since April 2016 and comes a day after it massively raised the retail and bulk deposit rates.
State Bank of India, the country’s largest lender increased marginal cost-based lending rates (MCLR) across most maturities, effective immediately. SBI raised the key one-year MCLR or benchmark rate to 8.15 per cent from 7.95 per cent, according to a notification from the bank.
This is the first time SBI has raised the one-year MCLR or benchmark rate since the inception of a new lending rate system in April 2016. The rate revision from SBI comes just a day after the bank raised interest rates on fixed deposits across most maturities.
Another state-run bank PNB also raised its lending rate, effective March 1, 2018. PNB raised its one-year MCLR rate to 8.30 per cent from 8.15 per cent. After this, ICICI Bank also raised its MCLR. The marginal cost of funds based lending rate of ICICI Bank is now 7.95% for the overnight rate against the earlier rate of 7.8%, a hike of 15 basis points.