Axis Bank hikes MCLR rates across tenors by 25 bps
The country's third largest private sector lender in a communication on its website stated that the benchmark one-year MCLR is up by 25 basis points to 8.35 per cent with effect from October 18, 2022
Axis Bank has increased the marginal cost of funds based lending rates (MCLR) by 25 basis points across tenors with immediate effect, the bank said on Tuesday.
The country's third largest private sector lender in a communication on its website stated that the benchmark one-year MCLR is up by 25 basis points to 8.35 per cent with effect from October 18, 2022.
The hike in MCLR rates by Axis Bank follows peer lenders increasing lending rates in response to a 50 basis increase in the repo rate by the Reserve Bank of India (RBI) on September 30.
Earlier, Axis Bank charged 8.10 per cent on one-year tenor MCLR--which is the benchmark for the lenders to price most of the consumer loans such as auto, personal and home.
Among other tenors from overnight to one-three and-six months, the new rates are in the range of 8.15 -8.30 per cent, up by 0.25 per cent each. The two year MCLR comes at 8.45 per cent and three year tenor will be 8.50 per cent.
These rates will be valid till the next review, Axis Bank said. A day earlier, SBI, Federal Bank and Kotak Mahindra Bank had raised the MCLR rates.
Apart from MCLR rates, banks raised their external benchmark repo linked lending rates by 50 basis points in an immediate response to RBI's repo rate action last month.
The repo rate now stands at 5.90 per cent. Since May this year, RBI has hiked the repo rate by a total 190 basis points. The increase in the repo-linked lending rates and the MCLRs has made loans costlier for the consumers.
From October 1, 2019, all banks migrated to an interest rate linked to an external benchmark such as RBI's repo rate or Treasury Bill yield for a better transmission of rate revisions.
The old rates are based on the MCLRs which are determined by factors such as deposit rates, repo rates, operating costs and the cost of maintaining the cash reserve ratio (CRR).
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Tamil Nadu Weather Alert: Chennai may receive heavy rains; IMD issues yellow & orange alerts in these districts
SIP vs PPF: How much corpus you can build in 15 years by investing Rs 1.5 lakh per year? Understand through calculations
SIP+SWP: Rs 10,000 monthly SIP for 20 years, Rs 25 lakh lump sum investment, then Rs 2.15 lakh monthly income for 25 years; see expert calculations
Top 7 Mutual Funds With Highest Returns in 10 Years: Rs 10 lakh investment in No 1 scheme has turned into Rs 79,46,160 in 10 years
SBI Senior Citizen Latest FD Rates: What senior citizens can get on Rs 7 lakh, Rs 14 lakh, and Rs 21 lakh investments in Amrit Vrishti, 1-, 3-, and 5-year fixed deposits
Retirement Planning: Investment Rs 20 lakh, retirement corpus goal Rs 3.40 crore; know how you can achieve it
11:56 PM IST