HDFC Bank cuts MCLR by 5 bps, Bank of Baroda raises 3-month rate by 10 bps
One basis point is a hundredth of a percentage point.
The MCLR is the internal benchmark for lenders to price loans.
HDFC Bank’s new rates came into effect from August 7, according to the bank’s website. BoB will raise the rate from August 12, it said in a stock exchange filing Monday.
The revised rates for HDFC Bank’s overnight, one-month, three-month, six-month, one-year and three-year MCLR stood at 8%, 8%, 8.15%, 8.30%, 8.40% and 8.65%, respectively. It kept the two-year MCLR unchanged at 8.55%.
To be sure, the Reserve Bank of India (RBI) last week kept its policy repo rate unchanged at 5.25%. Loans benchmarked against the policy rate are instantly repriced while banks change MCLR every month based on change in marginal cost.
BoB said it will raise the three-month MCLR to 8.30%, while its overnight, one-month, six-month and one-year MCLR rates will remain at 7.85%, 7.95%, 8.50% and 8.75%, respectively.
