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HDFC Bank hikes MCLR by 0.20 pc in third consecutive increase in rates

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The country’s largest private sector lender HDFC Bank on July 7 announced a 0.20 percent hike in its marginal cost of funding based lending rate across all tenors.HDFC Bank hikes MCLR by 0.20 pc in third consecutive increase in rates

This is the third such move by the lender in as many months since May, and takes the overall quantum of the rate hikes to 0.80 percent.

The RBI has hiked rates by a cumulative 0.90 percent since shifting to rate tightening in the first week of May as it saw its core objective of inflation management getting under trouble. Analysts have been expecting more rate hikes from the central bank in the days ahead as price rise pressures are expected to continue.

HDFC Bank said the one year MCLR, to which many consumer loans are pegged, will now be 8.05 per cent as against 7.85 per cent earlier. The overnight MCLR will be 7.70 per cent as against 7.50 per cent, while the three-year MCLR will be 8.25 per cent, as per the bank’s website.

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