Days ahead of the Reserve Bank’s monetary policy announcement, banks and housing finance companies have hiked the lending rates.
Mortgage lender HDFC on Monday increased its retail prime lending rate (RPLR) by 10 basis points with immediate effect. While State Bank of India increased the marginal cost of funds based lending rate (MCLR) by 0.05 basis points with from Monday, ICICI Bank raised the MCLR by 10 basis points.
HDFC said the new rates vary from 8.80 to 9.05 per cent on various slabs of loans. On August 1, HDFC had raised lending rates by 20 basis points following a rate hike by the RBI. The housing finance company had previously raised its lending rate on June 4.
On Saturday, state-run Punjab National Bank had increased its benchmark lending rates or MCLR for short-term loans by up to 0.2 per cent, effective Monday. With the revision, PNB’s overnight marginal cost of funds based lending rate (MCLR) now stands at 8.2 per cent as against 7.9 per cent. The MCLR for a one-month tenor were raised to 8.10 per cent from 8.05 per cent earlier.
In the fourth monetary policy review to be announced on October 5, the RBI is expected to raise repo rate by 25 bps from 6.50 per cent. The central bank had hiked rates twice since April this year.