State Bank of India (SBI) has hiked key lending rate benchmarks, including the external benchmark rate (EBR) and the marginal cost of funds based lending (MCLR), making all loans — retail, MSME and corporate — dearer.
The external benchmark rate has been upped by 50 basis points from 7.05 per cent to 7.55 per cent with effect from June 15. So, home loan interest rates and MSME loans, which are referenced to this benchmark, will go up to that extent. Depending on the borrower’s credit score, the interest rates for regular floating rate home loans now start at 7.55 per cent and go up to 8.05 per cent.
The bank also increased its MCLR by 20 bps across the board with effect from June 15. With this, the one-year MCLR is at 7.40 per cent (7.20 per cent earlier). Following this, interest rates on corporate loans, auto loans and personal loans will go up to that extent.
This hike comes on the heels of the bank upping interest rates on retail domestic term deposits (below ₹2 crore) in three maturity buckets and on domestic bulk term deposits (₹2 crore and above) in five maturity buckets by 15-20 bps and 50-75 bps, respectively, with effect from June 14.
As at December-end 2021, the proportion of floating rate loans linked to the external benchmarks in the banking system stood at 39.2 per cent. The share of MCLR-linked loans stood at 53.1 per cent, per RBI data.
Meanwhile, Bank of Baroda (BoB) has upped the interest rate on domestic, non-resident ordinary (NRO) and non-resident external (NRE Rupee deposit) fixed deposits below ₹2 crore by 25-30 basis points with effect from June 15. In the case of Baroda Advantage (Domestic / NRO / NRE) non-callable FDs (for minimum ₹15.01 lakh to below ₹2 crore), the interest rates have been hiked by 5 to 40 basis points.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.