Andhra Bank raises MCLR by 0.15% for various tenors

State-owned Andhra Bank has increased the marginal cost of funds based lending rate (MCLR) by 0.15 per cent to up to 8.70 per cent for various tenors.

"The bank has increased its MCLR with effect from August 16, 2018," Andhra Bank said in a BSE filing.

The MCLR for overnight, 1 month, 3 month, 6 month and one year tenors has been raised by 0.15 per cent each to 8.15 per cent, 8.20 per cent, 8.40 per cent, 8.55 per cent and 8.70 per cent, respectively, the bank said.

The move will make consumer loans such as auto, car and home loans costlier for buyers.

In June, too, Andhra Bank had increased the MCLR by 0.05 per cent to up to 8.55 per cent for various tenors.

Earlier this month, the Reserve Bank of India for the second time in two months had raised its benchmark interest rate by 25 basis points on inflationary concerns.

RBI increased repo rate, at which it lends to other banks, to 6.5 per cent.

Stock of Andhra Bank was trading 0.78 per cent higher at Rs 32.45 apiece on BSE.