Banks Hikes Lending Rates in February 2023 After RBI Increases Repo Rate: Check List Here

Earlier this month, the Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 6.50 percent. Following this, banks have raised their lending interest rates, increasing the cost of loans for borrowers. Here is the list of banks hikes lending rates following the RBI's decision.

With effect from February 15, 2023, the public sector lender has adjusted its MCLR by 10 basis points (bps) for all tenors. The rate for one month's tenor has also increased from 8 percent to 8.10 percent, while the overnight MCLR has increased from 7.85 percent to 7.95 percent. The one-year MCLR has been updated to 8.50 percent.

Moreover, Canara Bank updated its MCLR on February 12 by 5 bps. The current MCLR for the overnight to one-month tenor is 7.55 percent. The APR is 7.90 percent for a three-month loan and 8.30 percent for a six-month loan. For a one-year tenor, the MCLR is 8.50 percent.

With effect from February 9, the Central Bank of India increased the Revised Repo Based Lending Rate (RBLR) from 9.10 percent to 9.35 percent. Currently, the bank's MCLR varies from 7.50 percent for overnight loans to 8.15 percent for one-year loans.

The Repo Linked Lending Rate (RLLR) was increased by the Punjab National Bank by 25 basis points from 8.75 percent to 9 percent. The modifications become effective on February 9. For loans with terms of one month or one year, the MCLR is 8 percent and 8.40 percent, respectively.

On February 7, HDFC Bank updated the MCLR. In contrast to the MCLR, which is 8.75 percent, 8.90 percent, and 9.10 percent for the six-month, one-year, and three-year tenors, the interest rate for overnight and one-month tenors is 8.60 percent.