Your EMIs are set to rise! SBI, PNB and ICICI Bank increase lending rates

The cost of funds also fell from 6% to 5.42%. However, their NIM contracted by 26 bps to 2.45% in Dec '17

State Bank of India (SBI), the country’s largest lender, on Thursday raised its benchmark lending rates by up to 25 basis points -- the first time since the marginal cost-based lending rate (MCLR) regime was introduced in April 2016. One basis point is a hundredth of a percentage point.

The rate hike, effective immediately, comes a day after the bank raised its deposit rates by as much as 50 basis points (bps) across various maturities. 

While a change in deposit rates takes time to reflect on a bank’s balance sheet, a lending rate affects yields immediately and makes equated monthly