ICICI Bank and Bank of India have revised their marginal cost-based lending rate (MCLR) on loans across tenures for August. The rates are effective from August 1, 2023.
Punjab National Bank has decided to keep its basic lending rates at the same level for August.
Bank of India has raised its marginal cost-based lending rates on select tenor. As per the bank’s notification, the one-year MCLR is 8.70 per cent, while for three years, the MCLR is 8.90 per cent.
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ICICI Bank has hiked its marginal cost-based lending rates (MCLR) by 5 basis points (bps) across all tenures.
ICICI Bank’s overnight, one-month MCLR rate was hiked to 8.4 per cent from 8.35 per cent. The three-month, six-month MCLRs were increased to 8.45 per cent, and 8.80 per cent, respectively. The one-year MCLR is revised to 8.90 per cent from 8.85 per cent.
Punjab National Bank has kept its MCLR rates at the same level for August. In June, the public lender had raised it MCLR by 10 bps on all tenures.
As per the PNB website, the bank’s overnight benchmark marginal cost of lending is 8.1 per cent. The rates for one month, three months, and six months are 8.20 per cent, 8.30 per cent, and 8.50 per cent, respectively. The one-year MCLR is 8.60 per cent, while the three-year MCLR is 8.90 per cent.
The MCLR was created by the Reserve Bank of India (RBI) as an alternative to the base rate system.
The MCLR is revised every month, taking into consideration the repo rate and other rates related to borrowing.
The Reserve Bank of India’s six-member monetary policy committee (MPC) decided to pause the repo rate hike in April 2023 and kept it as is in the June meeting. The MPC meeting will take place between August 8 and August 10.