Bank of India raises MCLR rates by 0.05 pc on two tenures

Mumbai: State-run Bank of India on Thursday said it has increased its marginal cost of funds based lending rate (MCLR) by 0.05 per cent for overnight and one month tenure, effective October 10.

The new overnight rate stands at 8.05 per cent, while the one month rate has been revised to 8.15 per cent, the bank said in a statement. The lender left the MCLR rates for three, six and 12 months loan tenures unchanged at 8.30 per cent, 8.50 per cent and 8.60 per cent, respectively.

Many state-run lenders have recently increased their MCLRs, with country's largest lender State Bank of India raising it by 0.05 per cent for various tenures effective October 1. It's one year MCLR currently stands at 8.50 per cent, against 8.40 per cent previously.

Punjab National Bank also increased its benchmark lending rates or MCLR last week for the short-term loans by up to 0.2 per cent. Oriental Bank of Commerce (OBC) raised it's MCLR by 0.10 per cent for various tenures with effect from Thursday.

Another state-run lender Syndicate Bank increased its MCLR by 10 basis points or 0.1 per cent for loan tenure of three months, effective Thursday. It's interest rates for loan tenure of three months has been hiked to 8.50 per cent from 8.40 per cent earlier.

Few mortgage lenders including like Indiabulls Housing Finance, HDFC and LIC Housing Finance have also recently raised home loan rates owing to higher funding costs.