As private and public sector banks raise their interest rates, the burden on consumers will increase
New Delhi, Dt
The Reserve Bank is back on track to raise the repo rate to curb uncontrollable inflation. The Reserve Bank of India (RBI) had earlier hiked the repo rate by 0.50 per cent in May. The central bank again raised the repo rate by 0.50 per cent after the MPC meeting in June (RBI MPC meeting June 206). Thus, in May-June, the repo rate has risen by 0.50 per cent to 8.50 per cent. The latest increase in the repo rate was on Wednesday this week. Its impact is being felt by the borrowers. In just 3 hours after the announcement of the Reserve Bank, 3 banks announced increase in interest rates. Banker of Baroda: Bank of Baroda announced increase in Baroda repo linked lending rate. The bank said that now the rate has gone up to 6.50 per cent. Of this, 2.50 per cent is RBI’s repo rate. Apart from that, the bank has added 5.50% mark up. Bank of Baroda on Thursday said that the new rates have come into effect from June 4. Punjab National Bank: Punjab Nation Bank has increased the repo linked lending rate. “We have now raised the repo-linked lending rate to 7.50 per cent,” said the second-largest state-owned bank. PNB’s increased interest rates have also come into effect from June 2. ICICI Bank: This second largest private sector bank has been in the forefront of imposing additional interest rates on customers since the RBI’s announcement. ICICI Bank on Thursday hiked the benchmark lending rate by 0.50 per cent to 7.50 per cent. According to a notification on ICICI Bank’s website, the hike in External Benchmark Lending Rate (EBLR) has been in effect since June 4. Along with this, the bank has also increased the MCLR. The increased rates of MCLR have come into effect from June 01. The bank said that for one month and three months overnight, the MCLR is now 2.50 per cent and 7.5 per cent, respectively. Similarly, the revised MCLR is 6.50% for six months and 7.5% for the whole year. Indian Overseas Bank: Indian Overseas Bank has also announced a rise in interest rates in a regulatory filing. “We have decided to increase the repo-linked lending rate to 7.5 per cent,” said Indian Overseas Bank. This includes a repo rate of 2.50 per cent and a margin of 7.5 per cent. The bank said the hike would be effective from June 10. HDFCBank: The country’s largest private sector bank has raised interest rates on everything from housing loans to car loans and personal loans. However, the bank had hiked interest rates before the RBI’s announcement. The bank has raised the repo-linked lending rate by 0.50 per cent to 7.50 per cent. Apart from that, interest rates on other loans, which are not based on RLL, have been hiked by 0.5 per cent. Bank of India: Bank of India has also announced interest rate hike on its website. “We have raised the repo-linked lending rate to 7.5 per cent,” Bank of Baroda said. “We have decided to raise interest rates after raising the repo rate of the Reserve Bank to 7.50 per cent,” the bank said. HDFC Limited: HDFC Limited is the largest housing finance company in the country. “We have raised the benchmark retail prime lending rate for housing loans,” said HDFC Limited. HDFC Limited’s adjustable rate home loan is the best at this rate. The company has hiked the rate by 0.50 per cent. The company has told BSE that the increased rates will be applicable from 10 p.m.
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