IOB raises MCLR by 0.05 per cent on various maturities

Indian Overseas Bank (IOB) has raised its marginal cost of funds based lending rate (MCLR) by 0.05 per cent for various maturities with effect from Monday.

"Our bank has increased the MCLR by 0.05 per cent across all tenors except overnight tenor with effect from September 10, 2018," it said in a regulatory filing Friday.

The one-year MCLR, the rate on which most of retail loans are benchmarked, has been increased to 8.70 per cent, as against 8.65 per cent currently.

Two year and three year MCLRs are raised by 0.05 per cent each at 8.80 per cent and 8.90 per cent, respectively.

For one-three-six month tenors, the new rates will be up by 0.05 per cent each at 8.20 per cent, 8.40 per cent and 8.50 per cent.

The overnight MCLR is kept unchanged at 8.05 per cent.

The hike in MCLR rate follows industry leader SBI that has raised one-year rate by 0.20 per cent to 8.45 per cent last week.

ICICI Bank, Bank of Baroda and Vijaya Bank too have announced the rate hike.

Shares of Indian Overseas Bank closed 0.67 per cent up at Rs 14.90 apiece on BSE.