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ICICI Bank, Bandhan Bank increase MCLR across tenors

September 02, 2022

ICICI Bank, Bandhan Bank increase MCLR across tenors
ICICI Bank and Bandhan Bank are among lenders that on Thursday increased their marginal cost of funds-based lending rate (MCLR), almost a month after the rate-setting committee of the Reserve Bank of India (RBI) hiked the benchmark policy rate by 50 basis points (bps).

ICICI Bank, India’s second largest private sector lender, hiked its MCLR by 10 bps across tenors, effective September 1. Its overnight to one-year MCLR now ranges between 7.75 per cent and 8 per cent, according to the bank’s website.

Kolkata-based private sector lender Bandhan Bank increased its MCLR by 41-65 bps across tenors, resulting in its overnight to three-year MCLR ranging from 9.14 per cent to 10.47 per cent.

Karnataka Bank raised its MCLR by 10 bps across tenors, with effect from September 1. Its overnight to one-year MCLR now ranges from 8.35 per cent to 9.10 per cent.

The six-member monetary policy committee (MPC) raised the repo rate by 50 bps to 5.40 per cent in early August, its third successive rate hike to tame headline inflation, which has been hovering over the threshold level for quite some time now.

Earlier this week, public sector lender Punjab National Bank hiked its MCLR by 5 bps.

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