IndusInd Bank raises its MCLR

23 Jun 2022 , 09:34 AM

On Wednesday (22-06-2022), the private sector bank IndusInd Bank increased its marginal cost of funds-based lending rates (MCLR) across all tenures by 15 basis points (bps). According to data on the lender’s website, the bank’s one-year MCLR now stands at 9 percent. In June, the bank raised its one-year MCLR by 25 basis points.

Compared to the rises the bank announced in other months, the MCLR increase in June is more pronounced. The bank increased the MCLR by 5 bps in each March and April and then increased lending rates by 20 bps in May in response to the Reserve Bank of India’s 40 bps increase in the repo rate at an off-cycle meeting that same month. The central bank then increased the repo rate by 50 basis points during a scheduled meeting in June.

Following several increases in the repo rate, the majority of banks increased their MCLR since additional rate increases are anticipated in the upcoming months. The cost-based lending rates for June were increased by 30 to 35 bps at ICICI Bank, Kotak Mahindra Bank, and HDFC Bank. 

The one-year MCLR for ICICI Bank is now 7.55 percent, while that of HDFC Bank is 7.85 percent, the same as Kotak Mahindra Bank. PSBs have increased their MCLR as well. While Bank of Baroda and Union Bank set their one-year MCLR for June at 7.5 percent and 7.45 percent, respectively, SBI increased its one-year MCLR to 7.40 percent.