State-owned lenders raise MCLR, month after third repo rate hike

RBI has increased benchmark policy rate by 140 bps cumulatively since May

State-owned banks are increasing their marginal cost of funds-based lending rate (MCLR), more than a month after the monetary policy committee (MPC) in August hiked the benchmark policy rate for the third consecutive time to tame headline inflation.

Union Bank of India hiked its MCLR by 5-25 basis points (bps) across tenors, effective September 11. Its overnight to three-year MCLR now ranges from 7 per cent to 8.10 per cent.

Tamil Nadu-based Indian Overseas Bank increased its MCLR by 10 bps across tenors, effective September 10. Its overnight to three-year MCLR now ranges between 7.05 per cent and 7.80 per