State Bank of India hikes interest rates on loans across most maturities
Mumbai, Mar 1 (IBNS): The country's largest lender, the State Bank of India, on Thursday, raised its marginal cost-based lending rates (MCLR) across most maturities, with immediate effect, according to media reports.
The MCLR refers to the minimum interest rate of a bank below which it cannot lend, except in some cases allowed by the RBI.
The MCLR has been raised by 10-25 basis points across most maturities, according to a release by the lender.
SBI, which accounts for more than a fifth of India’s banking assets, raised the key 1-year MCLR to 8.15 per cent from 7.95 per cent, according to a notification on Thursday.
For the two- and three-year tenure, the rates were increased to 8.25 per cent (from 8.05 per cent) and 8.35 per cent (from 8.10 per cent), respectively.
Rates on overnight and six month maturities were raised by 10 bps to 7.80 per cent and 8.00 per cent.
According to reports, this is the first time the when the country’s top lender by assets, raised lending rates since September 2016.
On Wednesday, SBI hiked its retail and wholesale deposit rates by 10 to 50 basis points (bps) across various maturity baskets.
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