Indian banks adjust lending rates, ICICI and HDFC among those revising MCLR

  • Stock Market News
Indian banks adjust lending rates, ICICI and HDFC among those revising MCLR
Credit: © Reuters.

Banks across India have recently updated their Marginal Cost-based Lending Rates (MCLRs), affecting loan costs for consumers and businesses. ICICI Bank has increased its MCLR across various durations, notably setting its annual rate at 9%. HDFC Bank has also revised its rates, with the immediate borrowing cost now at 8.65% and the annual rate remaining stable at 9.2%. Additionally, HDFC has raised its two-year and three-year term rates to 9.25% and 9.30%, respectively.

This wave of revisions began on November 1, with an unnamed bank introducing an 8% starting rate for overnight borrowing. LIC Housing Finance offered savings on certain loan products in conjunction with this change. The Bank of India restructured its three-month plan to 8.35% and adjusted the annual term to 8.75%. Punjab National Bank's incremental changes included an overnight rate increase to 8.20% and a new benchmark for three-year loans at 8.95%.

Further adjustments were made from November 12, as Bank of Baroda set its short-term funding baseline at 8%, adjusting half-yearly obligations to 8.55% while keeping its annual loans fixed at 8.75%. Yes Bank took a more assertive approach, starting with rates at 8.90% and marking up the annualized lending cost significantly to 10.40%.

These recent changes by major banks like ICICI and HDFC, as well as other financial institutions, reflect ongoing adjustments in the banking sector aimed at managing borrowing costs in response to market conditions. Borrowers are advised to review these changes as they may impact loan repayments and overall financial planning.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or