SBI, PNB and ICICI Banks hikes interest rates

New Delhi, June 02: In a shocking news, According to RBI's monetary policy review, India's three major banks SBI, PNB and ICICI Bank today increased their benchmark lending rates or MCLR by up to 0.1 percent, making loans costlier for consumers.

The new rates are effective from today.

India's largest lender SBI has increased the lending rate by 10 basis points across all tenors up to three years.

Now SBI's overnight and one-month tenors' Marginal Cost of Funds Based Lending Rate (MCLR) stands at 7.9 percent as against 7.8 percent, as per the SBI's website. The MCLR for a three-year tenor increased to 8.45 percent from 8.35 percent earlier.

The state-owned Punjab National (PNB), the country's second-largest lender, raised the MCLR for three-year and five-year tenors to 8.55 percent and 8.7 percent, respectively.

Country's second largest private bank ICICI Bank too said it has raised five-year tenor MCLR by 10 bps to 8.70 percent. It has also raised the MCLR by 10 bps in loans with tenor of one year and three years.

However, the lending rate remains unchanged in case of loans up to three months.

PNB has also increased the base rate to 9.25 percent from the earlier 9.15 percent.

Private sector bank ICICI Bank too has raised one-year MCLR by 10 bps to 8.40 percent from today.

Meanwhile, mortage lender HDFC said that it has increased its retail prime lending rate (RPLR), on which its adjustable-rate home loans (ARHL) are benchmarked, by 10 basis points, effective tomorrow.

Karnataka Bank has raised its interest rates on deposits.