ICICI Bank increased its marginal cost of funds based lending rate (MCLR) by 15 basis points across tenors. The overnight and one-month MCLR now stands at 7.65 per cent; three-month MCLR at 7.70 per cent; six-month MCLR at 7.85 per cent; and one-year MCLR by 7.90 per cent.
Bank of India raised its MCLR by 10 basis point across tenors, taking its overnight MCLR to 6.80 per cent; one-month MCLR to 7.30 per cent; three-month MCLR to 7.35 per cent; six-months MCLR to 7.45 per cent; one-year MCLR to 7.60 per cent; and three-year MCLR to 7.80 per cent.
Indiabulls Housing Finance raised its lending rates by 25 basis points. The rates will be effective from August 1 for new borrowers while for existing borrowers, the revised lending rates will be effective from August 5 onwards.
“Indiabulls Housing Finance Ltd. revises its reference rates on housing loans and MSME loans by 25 basis points in line with other leading home loan lenders and banks recent revisions,” it said in a notification to the exchanges on Monday.
Last week, HDFC Ltd raised its home loan rates by 25 basis points, its fifth hike in the last two months. The mortgage lender has raised its rates by 115 basis points since May this year.
The revised rates for new borrowers range between 7.80 per cent and 8.30 per cent, depending on credit and loan amount. The existing range is 7.55 per cent to 8.05 per cent. For existing customers, the rates will rise by 25 basis points or (0.25 per cent).
HDFC has moved from a quarterly reset for individual loans to a monthly reset to reduce the impact of transmission of rate changes. Its net interest income and net interest margin was impacted in Q1 because the interest rate actions by the central bank had an impact on the borrowing cost of the lender without a simultaneous transmission on the asset side.
Last week, Kolkata-based Bandhan Bank also raised its MCLR by 18–88 basis points, effective July 30. Consequently, the overnight, one-month, and three-months MCLR stands at 8.49 per cent; six months MCLR at 9.09 per cent; 1-year MCLR at 9.45 per cent; 2-year MCLR at 9.78 per cent; and 3-year MCLR at 10.06 per cent.
The MPC has this year increased benchmark interest rates by 90 basis points, taking the repo rate to 4.90 per cent. It had raised interest rate by 40 basis points in May and followed it up by a 50 basis points hike in June.