New Delhi: SBI hikes interest rate on home and car loans on thursday. SBI on Thursday raised the key one-year marginal cost of funds based lending rate (MCLR) by 20 basis points to 8.15 per cent from 7.95 per cent. India’s largest public sector lender said the new MCLR will be effective from March 1, 2018. The hike in lending interest rates comes a day after SBI hiked deposit rates across maturities.
This is the first time the state-run bank has hiked one-year MCLR since April 2016, according to a Reuters tally. The SBI’s move to raise its lending comes despite the Reserve Bank of India maintaining status quo on its rates.
Today’s decision also comes a day after SBI raised interest rates on deposits across most maturities. The rates were hiked steeply by up to 0.75 per cent with immediate effect. That revision comes after three consecutive revisions in the rates by SBI on bulk term-deposits in the past three months.
Several banks have been increasing their deposit and lending rates since the last quarter. While lending rates have been jacked up on an average of 5-10 bps by private sector lenders like HDFC Bank, Axis Bank, Kotak Mahindra Bank and Yes Bank since January, almost all the state-run lenders have been increasing their bulk deposit rates in the range of 15 bps to 125 bps.