Banking majors PNB, SBI hike MCLR rate for one-year loan

Mumbai:Banking majors SBI and PNB on Friday hiked their benchmark marginal cost of funds based lending rate (MCLR) for its one-year loans by 10 basis points. This hike will be effective from June 1.

It is to be mentioned that a basis point is equivalent to 0.01 percentage point.

The last time the rates were increased was in March this year by the State Bank of India and Punjab National Bank.

This increase comes after the banks raised fixed deposit (FD) interest rates.

The increase:

• Increase in the overnight MCLR has been recorded to 7.9 per cent with effect from Friday.
• The one-month MCLR, likewise, has been raised to 10 basis points higher than the earlier rate.
• The three month MCLR will now stand at 7.95 per cent and the SBI's six-month MCLR has been increased to 8.1 percent.

Talking about the yearly increase:

• One-year MCLR has been raised to 8.25 per cent.
• Two-year MCLR has been raised to 8.35 per cent
• Three-year MCLR have been raised to 8.45 per cent.

The increase of SBI fixed deposit (FD) rates May 28 and it has led to a rise in the lending rates.....