ICICI, PNB and Bank of India raise lending rates: Here's how it will impact you

Major banks have been increasing their lending rates after the Reserve Bank of India (RBI) started hiking the repo rate. RBI has been increasing the repo rate to contain the inflation. Various lenders have hiked their External Benchmark-based Lending Rates (EBLRs) and Marginal Cost of Funds based Lending Rates (MCLRs) following the RBI repo rate increase. ICICI Bank, Punjab National Bank (PNB), and Bank of India have increased their lending rate this month, with the new rates coming into effect from 1 December. This action has been taken before the forthcoming Monetary Policy decision by the RBI. The RBI hiked the benchmark interest rate by 50 basis points (bps) to 5.9 per cent on 30 September. This was the fourth consecutive hike in rate after a 40 bps raise in May and 50 bps hike in June and August. All the banks need to lend only at an interest rate linked to an external benchmark like the Treasury Bill yield or RBI’s repo rate. While the lending rates have been hiked by all the major banks in line with the RBI repo rate hike, the interest rates on term deposits have been increased by a much lower margin. Have a look at the banks that have recently hiked their MCLRs: ICICI Bank ICICI Bank has raised the MCLR by 10 bps. The overnight and one-month MCLR has been increased to 8.15 per cent from 8.05 per cent. The three-month and six-month MCLRs have been hiked to 8.2 per cent and 8.35 per cent, respectively. The MCLR for one year has been raised to 8.4 per cent. Punjab National Bank (PNB) PMB has hiked its MCLR by 5 bps across all tenures. The one-year MCLR now stands at 8.1 per cent, up from 8.05 per cent. The six-month MCLR has been raised to 7.8 per cent from 7.75 per cent. Bank of India This bank has raised the MCLR by 25 bps. Now, its one-year MCLR stands at 8.15 per cent, up from 7.95 per cent, while the six-month MCLR has been hiked to 7.9 per cent from 7.65 per cent. Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.