The equivalent monthly installments (EMI) of these banks will be expensive for those who benefit from loans compared to the MCLR.
Indian Overseas Bank raised the marginal cost of funds-based lending rate (MCLR) by 10 basis points.
“The two- and three-year MCLRs have been increased by a similar margin at 7.80% each. Among other things, the overnight MCLR will cost 7.05%, while one month at 7.15%. Three- and six-month MCLRs are up at 7.70 percent each. The revised MCLRs will come into effect from September 10, 2022,” Indian Overseas Bank said in a regulatory filing.
This decision will make consumer loans more expensive.
The bank reported a 20.1% rise in net profit to Rs 392.18 crore despite a 2.5% drop in total revenue to Rs 5,028.20 crore in the first quarter of the fiscal year. 23 compared to the first quarter of fiscal 22.
“Bank of Baroda’s one-year MCLR will be priced at 7.80% from 7.70%,” the bank said in a regulatory filing.
The six-month MCLR will be up to 7.65% from 7.55% while the three-month MCLR will be at 7.50% from 7.45%.
Reserve Bank of India standards require banks to revise their lending rates every month based on the marginal cost of funds.
First post: STI