SBI increases lending rate by 70 basis points

15 Mar 2023 , 12:35 PM

The largest lender of India, State Bank of India has increased its benchmark prime lending rate (BPLR) by 70 basis points (bps) to 14.85% with effect on loans from today, March 15.

SBI has also hiked its base rate by 70 bps to 10.10% from 9.40%.

It had last updated its base rate and benchmark prime lending rate on December 15, 2022.

However, the public lender has decided to keep the marginal cost of funds-based lending rates unchanged. This meant that the home loans rates will not be impacted. MCLR is the rate at which a bank gives out loans to customers.

It had hiked the MCLR rates changed on February 15 by 10 bps. At present, the overnight MCLR stands at 7.95% whereas the monthly MCLR rate stands at 8.10%. The three-month MCLR rate and six-month MCLR rate stand at 8.10% and 8.40% respectively.

The MCLR rates for one-year loans, two-year loans and three-year loans stand at 8.50%, 8.60%, and 8.70% respectively. SBI had increased the rate after the RBI hiked repo rate by 25 basis points to 6.50% on February 8 in a bid to tackle inflation.