In a surprising move, both Punjab National Bank (PNB) and ICICI Bank have announced a 5 basis points (bps) increase in their Marginal Cost Based Lending Rates (MCLR), potentially making loans more expensive for their customers.
These rate hikes, as per the banks’ websites, have already taken effect from September 1, 2023. MCLR serves as the minimum lending rate below which banks cannot extend loans.
ICICI Bank’s Rate Adjustments:
- All Tenors Impacted: ICICI Bank has raised the MCLR rate by 5 bps across all tenors.
- Overnight and One-Month Rates: The overnight MCLR rate has inched up to 8.45 percent from 8.40 percent. Meanwhile, the one-month MCLR rate now stands at 8.50 percent.
- Three and Six Months Rates: For the three-month and six-month tenors, ICICI Bank has set the MCLR rates at 8.50 percent and 8.85 percent, respectively.
- One-Year Rate: ICICI Bank has made a slight adjustment for the one-year MCLR, moving it from 8.90 percent to 8.95 percent.
PNB’s Rate Modifications:
- September Rate Hike: Punjab National Bank has also raised MCLR rates by 5 basis points in September.
- Overnight and One-Month Rates: PNB’s overnight rate has increased from 8.10 percent to 8.15 percent, while the one-month MCLR rate has moved from 8.20 percent to 8.25 percent.
- Three and Six Months Rates: PNB’s MCLR rates for the three-month and six-month tenors now stand at 8.35 percent and 8.55 percent, respectively.
- One-Year and Three-Year Rates: The one-year MCLR has been adjusted to 8.65 percent from 8.60 percent, and the three-year MCLR now stands at 8.95 percent after the 5 bps hike.
Bank of India Remains Stable:
In contrast to PNB and ICICI Bank’s rate adjustments, Bank of India has chosen to keep its MCLR rates unchanged during this update.
- Steady Rates: As per the bank’s website, Bank of India’s overnight MCLR rate remains at 7.95 percent, while the one-month MCLR rate stands at 8.15 percent.
- Three and Six Months Rates: The MCLR rates for the three-month and six-month tenors in Bank of India are 8.30 percent and 8.50 percent, respectively.
- One-Year and Three-Year Rates: Bank of India’s one-year MCLR remains at 8.70 percent, and the three-year MCLR stands firm at 8.90 percent.
These adjustments in MCLR rates by PNB and ICICI Bank may impact the borrowing costs for their customers and could lead to higher Equated Monthly Installments (EMIs) on loans.
Customers are advised to stay informed about these changes and assess their financial planning accordingly.