Bank of Maharashtra increases lending rate by 10 bps for select tenure

State-owned Bank of Maharashtra (BoM) on Thursday said it has increased its marginal cost of funds-based lending rate (MCLR) for select tenure by 10 basis points.

The benchmark one-year MCLR, used to price most consumer loans such as auto, personal and home, has been revised upwards to 8.60 per cent from 8.70 per cent, the lender said in a regulatory filing.

The revised MCLR has come into effect from October 11, 2023.

At the same time, the Pune-based bank has increased its fixed deposit rates by up to 125 basis points, or 1.25 per cent, with effect from Thursday.

The rate increase applies to fixed deposits and special schemes as per the period maintained by the bank, the lender said in a statement.

The hike in deposit rates will encourage individuals and businesses to save more as there is a sharp increase of 125 bps in deposit rates for the tenure of 46-90 days, it said.

For a tenure of 1-year interest would be 6.50 per cent, and for deposits above one year, customers will enjoy an increase of 25 bps, up to 6.25 per cent, it added.