Indian Bank Lending Rate: ICICI & Indian Bank raises benchmark lending rate by 35 bps, makes loans costlier

ICICI Bank and Indian Bank increased their benchmark lending rate by up to 35 basis points, making loans more expensive for the borrowers on Tuesday.

With effect from November 1, private sector lender ICICI Bank raised the Marginal Cost of Funds based Lending Rates (MCLR) across tenure by 20 basis points.

The official bank’s website showed that the one-year MCLR now stands at 8.30 per cent. Likewise, the six-month MCLR is now 8.25 per cent. While the public sector lender Indian Bank raised the overnight MCLR by 35 basis points to 7.40 per cent.

The MCLR has been evaluated by the bank’s Asset Liability Management Committee (ALCO), and as of November 3 the new rates are in place, Indian Bank stated in a regulatory filing.

The MCLR rate for one year has been raised to 8.10%.

Given that a bank’s long-term loans, such as home loans, are tied to this rate, the one-year MCLR is significant from the standpoint of retail loans.

Inputs from PTI