Allahabad Bank to raise MCLR up to 10 bps from May 1

State-run Allahabad Bank on Friday said it will raise the marginal cost of funds based lending rates (MCLRs) by five basis points for the tenors upto two years except six months and by 10 basis points for three years tenors from May 1.

The upward revision of benchmark lending rates may increase interest rates on existing loans and new advances.

"...the Asset Liability Management Committee (ALCO) of the bank has reviewed the existing Marginal Costs of Funds based Lending Rates and decided for an upward revision of MCLR by 5 basis points for the tenors upto two years except six months tenor and by 10 basis points for the three years tenor," it said in a regulatory filing.

The MCLR for one year tenor has been hiked from 8.25 per cent to 8.3 per cent and the same for two year period would be raised to 8.5 per cent, the city-based lender said.

The rate would also be hiked by 10 basis points to 8.6 per cent for three year tenor, it said in the filing.

On Friday, the bank's shares closed at Rs 49.15 a piece, up by 4.13 per cent, on BSE.

--IANS

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