Private sector lender ICICI Bank and state-owned Bank of India have raised their marginal cost of funds-based lending rates (MCLR) across various tenures, effective from November 1, 2023. The move comes after RBI Governor Shaktikant Das last month said complete transmission of the current monetary policy cycle has not taken place yet and there is a scope for a rate hike.
ICICI Bank
After the latest MCLR hike, ICICI Bank’s overnight, one-month MCLR now stands at 8.50 per cent. The three-month MCLR currently stands at 8.55 per cent, and 6-month rate at 8.90 per cent, respectively. The one-year MCLR is 9 per cent.
Bank of Baroda
After the latest MCLR hike, Bank of India’s overnight and one-month MCLR stands at 7.95 per cent and 8.20 per cent, respectively. Three-month MCLR is now at 8.35 per cent and six-month MCLR at 8.55 per cent. The benchmark one-year MCLR currently stands at 8.75 per cent, while the three-year MCLR stands at 8.95 per cent.
MCLR, which was implemented by the RBI on April 1, 2016, is the minimum lending rate below which a bank is not allowed to lend.
Banks have been raising interest rates on both loans and deposits since last year after continuous repo rate hikes by the RBI since May 2022. They may raise it further after RBI Governor Shaktikanta Das earlier last month said that there is a scope for further increase in deposit and loan rates as the transmission of monetary policy has not been fully achieved.
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