IOB, BOM raise MCLR by up to 25bps

  • India Infoline News Service |
  • 09 Nov, 2022 |
  • 3:19 PM
To reflect the increase in the cost of funds for the state-owned lenders, Indian Overseas Bank (IOB) and Bank of Maharashtra (BoM) increased the Marginal Cost of Funds Based Lending Rate (MCLR) by 5 to 25 basis points across tenors.
In a BSE filing, Chennai-based IOB stated that its revised MCLR for a one-year tenor would be 8.05%, up from the prior rate of 7.90%. Starting on November 10, 2022, the new rates will be in effect. It raised rates in six tenors, from 15 days (a fortnight) to three years, commencing with a 10 basis point increase (25 Bps). It maintained the three-month MCLR at 7.85 %.

The cost of deposits for IOB increased sequentially from 4.04 % in the quarter ending April-June 2022 (Q1Fy23) to 4.11 % in the quarter ending September 2022. (Q2Fy23). Its yield on advances increased from 7.34 % in the first quarter of 2018 to 7.83 % in the second.
The Reserve Bank of India reports that the scheduled commercial banks' one-year median MCLR increased from 7.75 % in September 2022 to 7.90 % in October 2022. In light of the limited liquidity, lenders have transferred some of the rise in funding costs on borrowers, according to bankers.

For feedback and suggestions, write to us at

Invest wise with Expert advice

ad IconAd Image

Most Read News

Article Image
  • 14 March, 2022 |
  • 7:03 AM

The US Federal committee's meeting will conclude on March 16, 2022.

Most Shared News

No Record Found