Indian Express News Feed

THESE THREE TOP Banks increase lending rates by as much as 10 basis points

<p>The lending rates at Bank of Maharashtra, Canara Bank, and Bank of Baroda are expected to increase by up to 10 basis points.<img decoding=”async” class=”alignnone wp-image-123801″ src=”” alt=” these three top banks increase lending rates by as much as 10 basis points images 99 11zon” width=”1178″ height=”784″ srcset=” 275w,×100.jpg 150w” sizes=”(max-width: 1178px) 100vw, 1178px” title=”THESE THREE TOP Banks increase lending rates by as much as 10 basis points 3″></p>
<p>Bank of Baroda (BoB) and Canara Bank are two examples of public sector banks that have increased their marginal cost of funds-based lending rates (MCLR) by up to 10 basis points. This choice was made notwithstanding the RBI’s Thursday decision to keep the policy rate unchanged.</p>
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<p>Higher EMIs will result from this increase for loans with MCLR ties. The benchmark rate for the majority of consumer loans is the one-year MCLR.</p>
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<p>The amended one-year MCLR, which was formerly 8.65 percent, will now be 8.70 percent, according to a regulatory filing by BoB. The new policy will take effect on August 12th.</p>
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<p>Similar to this, Canara Bank increased its MCLR by 5 basis points to 8.70% as of August 12th.</p>
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<p>Another public sector lender, Bank of Maharashtra (BoM), has taken things a step further by increasing its MCLR by 10 basis points. The one-year MCLR will increase from its previous 8.50 percent level to 8.60 percent as a result of this change. Beginning on August 10, 2023, the new rate was in effect.</p>
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<p>The Monetary Policy Committee (MPC) has voted to keep the policy repo rate at 6.50 percent. Shaktikanta Das, governor of the Reserve Bank of India, said in a statement following the meeting that the MPC’s focus is still on gradually removing accommodation to bring inflation in line with the target while also promoting economic growth, even though monetary transmission is still taking place and headline inflation is still above the 4% target.</p>
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