Banks hike interest rates on loans despite no change in the Repo rate by RBI

The Reserve Bank of India did not change its Repo Rate which remained at 6.50 percent. But several banks have announced increase in the loan and EMI rates. The banks have increased their Marginal Cost of Fund Based Lending Rate by 0.10 percent which means loans rates will be higher. These banks included Bank of Baroda, Canera bank, Bank of Maharashtra and some others. If the MCLR increases, then the EMI also increases.

Bank of Baroda has announced that the MCLR will be increased to 8.70 percent from the existing was 8.65 percent previously. It will come into force from 12th August 2023.

Canera bank has also increased its MCLR by 0.05 percent and now it will be 8.70 percent. This will also come into force from 12th August 2023.

Bank of Maharashtra has increased its MCLR by 0.10 percent. With this, now the MCLR has increased from 8.50 percent to 8.60 percent. The changes will come into force from 10th August 2023. The BoM has also cleared that the six month's MCLR will be 8.50 percent while three month's MCLR will be 8.30 percent.

Axis bank has increased its Fixed Deposit (FD) rates. The bank said that those people who have less than two crores' rupees will get 0.15 percent more interest. The change will come into force from 11th August 2023.

Last week, ICICI Bank had increased the prices of all term loans by 0.05 per cent while Punjab National Bank had increased the rates on its select periods. Bank of India had increased the one year loan to 8.70%. HDFC Bank had also increased the loan rates. The repo rate was increased by 2.5% from May last year to February this year