New Delhi: The Reserve Bank of India (RBI) is set to make its bi-monthly monetary policy decision later this week. The MCLR (Marginal Cost of Funds Based Lending Rate) of ICICI Bank, Bank of India (BOI), and PNB has been raised in advance of the MPC meeting and is now effective as of today, August 1, 2022. According to the official ICICI Bank website, the MCLR rates have increased by 15 basis points across all tenors, while the BOI has increased the MCLR by 10 basis points across all tenors.
ICICI Bank MCLR
According to the ICICI Bank’s official website, the overnight MCLR has been raised from 7.50% to 7.65%, the one-month MCLR has been raised from 7.50% to 7.65%, the three-month MCLR has been raised from 7.55% to 7.70%, the six-month MCLR has been raised from 7.70% to 7.85%, and the one-year MCLR has been raised from 7.75% to 7.90%. ICICI Bank raised the MCLR by 20 basis points last month, effective July 1, 2022. As a result of the increased MCLR, ICICI Bank retail customers will have to pay higher EMIs on their loans.
Bank of India increased its MCLR by 10 basis points across all tenors, bringing it to 6.80 percent for overnight tenor, 7.30 percent for one-month tenor MCLR, 7.35 percent for three-year MCLR, 7.45 percent for six-months MCLR, 7.60 percent for one-year MCLR, and 7.80 percent for three-year MCLR. The six-month MCLR has been reduced to 7.45 percent, the one-year MCLR has been reduced to 7.60 percent, and the three-year MCLR has been reduced to 7.80 percent. Previously, the bank raised the MCLR on July 1, 2022.
According to its website, Punjab National Bank has upped its MCLR by 10 basis points across all tenors. On Monday, August 1, the increased PNB MCLR rates went into effect. PNB’s overnight lending benchmark marginal cost of lending rate increased from 6.90 percent to 7.00 percent, the 1-month MCLR increased from 6.95 percent to 7.05 percent, the 3-month MCLR increased from 7.05 percent to 7.15 percent, the six-month MCLR increased from 7.25 percent to 7.35 percent, the 1-year MCLR increased from 7.55 percent to 7.65 percent, and the 3-year MCLR increased from 7.85 percent to 7.95 percent.
Loan EMIs for both current and new borrowers will rise as a result of the increased MCLR at the aforementioned institutions. Because EMIs will rise as a result of the MCLR rate hike, home, vehicle, and personal loans will become more expensive. To battle inflation, the RBI is expected to raise the repo rate again at the upcoming MPC meeting.