SBI raises lending rates by 10 bps, followed by PNB, ICICI Bank, HDFC

SBI's one-year MCLR, which most loans are based on, is now 8.25%

State Bank of India (SBI) raised its benchmark lending rates by 10 basis points (bps), followed by Punjab National Bank (PNB), ICICI Bank, Kotak Mahindra Bank and Housing Development Finance Corp (HDFC).   

Bankers said it was to pass on the rising cost of funds to customers and an effort to protect the net interest margin. As the rise was small, it would not affect demand for credit. 

While SBI, ICICI, Kotak Mahindra and PNB raised their marginal cost of funds-based lending rate (MCLR)  by 10 basis points, HDFC raised its retail prime lending rate likewise. While the others kept