INSUBCONTINENT EXCLUSIVE:
June is the hottest month of the year
Even so for the banks' lending rates
Almost all major banks have raised their lending rates in past few days
From the State Bank of India (SBI) to Punjab National Bank (PNB), from ICICI Bank to Kotak Mahindra Bank, and from Bank of India to Oriental
Bank of Commerce, the rates of interest have been hiked for borrowers
The hike of interest has followed the cycle of higher fixed deposit (FD) rates offered by these banks which kicked off in the end of May
Another addition of marginal cost for the banks came in form of higher repo rates (short term loans given by RBI to banks) that rose from 6
percent to 6.25 per cent in the RBI policy that was announced on June 6.SBI, ICICI Bank, Punjab National Bank, HDFC and Kotak Mahindra Bank
raised the interest rates before the RBI monetary policy.However, as the Urjit Patel-led monetary policy committee (MPC) announced the tight
monetary policy last week; Bank of India, Oriental Bank of Commerce and Syndicate Bank also followed.The last time SBI, ICICI Bank and PNB
raised the lending rates was in March
During that time also, it happened a day after the banks raised their rates after the FD rates were raised.State Bank of India (SBI) Lending
Rates with effect from June 1, 2018TenorExisting MCLR (In %)Revised MCLR (In %)Over night7.87.9One Month7.87.9Three Month7.857.95Six
Month88.1One Year8.158.25Two Years8.258.35Three Years8.358.45The new lending rates or MCLR for one year is 8.25 per cent
For two years, the lending rate is 8.35 per cent
For three years, the lending rate is 8.45 per cent.Similarly, the three month MCLR is 7.95 per cent
The overnight and one-month MCLR are the same 7.8 per cent and 7.9 per cent.Punjab National Bank (PNB) lending Rates (MCLR) raised from June
1, 2018Ovenight7.87.8One month7.957.95Three months8.18.1Six months8.258.3One year8.38.4Three years8.458.55Five years8.68.7The new marginal
cost of lending rates is 8.4 per cent for one year, and 8.3 percent for six months
For three years and five years, the MCLR are 8.55 per cent and 8.7 percent.Bank of India's lending rates (MCLR)Rate effective from
10.06.2018RatesOvernight MCLR7.90%1 Month MCLR8.20%3 Months MCLR8.30%6 Months MCLR8.45%1 Year MCLR8.50%Oriental Bank of Commerce's lending
