Leading public sector lenders Punjab National Bank (PNB) and Bank of Baroda (BoB) have hiked their lending rates by up to 25 basis points following the Reserve Bank’s interest rate hike. PNB said in a regulatory filing that it has hiked the Repo Linked Lending Rate (RLLR) by 25 basis points from 8.75 per cent to 9 per cent from Thursday.
8.55 percent
One month MCLR increased from 8.15 percent to 8.20 percent. According to Punjab National Bank, the MCLR for the three-month period has reached 8.30 percent from 8.25 percent, while the one-year period has been increased from 8.5 percent to 8.55 percent.
Bank of Baroda
Bank of Baroda has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all tenures. The new rates will be effective from February 12, BoB said in a regulatory filing.
After the latest revision, its MCLR has increased from 7.85 percent to 7.90 percent. One month MCLR has been increased from 8.15 percent to 8.20 percent.
EMIs to rise
The MCLR for the three-month period has reached 8.30 percent from 8.25 percent, while the one-year period has increased from 8.5 percent to 8.55 percent, the bank said. Personal loan, vehicle loan and home loan EMIs will increase with interest rate hike. Interest rates are not the same for these two banks. Other banks have also increased. Others are ready to be raised.
Inflation
The Reserve Bank of India (RBI) has raised the repo rate a total of six times in the past. After keeping the repo rate steady for ten consecutive months till April 2022, the RBI has hiked the repo rate six times to curb inflation.