Page 2 - Lending Rates

Karur Vsysa Bank raises lending rate by 0.15%, to be effective from Aug 14

Private sector Karur Vysya Bank announced a hike in benchmark lending rate by 0.15 per cent to 7.75 per cent even as the Reserve Bank left its key interest rates unchanged for the third straight meeting on Thursday. The new rate would be effective from August 14, Karur Vysya Bank said in a regulatory filing. The External Benchmark Rate - Repo linked (EBR-R) of the bank would be revised from 9.60 per cent to 9.75 per cent, it said. The Monetary Policy Committee (MPC) has decided to keep the policy repo rate unchanged at 6.50 per cent with preparedness to act, should the situation so warrant, Reserve Bank of India Governor Shaktikanta Das said earlier in the day. "Further, with monetary transmission still underway and headline inflation remaining higher than the 4 per cent target, the MPC decided to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns with the target, while supporting growth," he said.

Interest on bank deposits rising faster than on loans: CARE Ratings

The one year median Marginal Cost of Fund based Lending Rate (MCLR) of SCBs increased from 8.55 per cent in March 2023 to 8.60 per cent in April 2023

Bank of Maharashtra hikes lending rates by 10 basis points across tenors

State-owned Bank of Maharashtra (BoM) on Monday announced increase in the marginal cost of funds based lending rates (MCLR) by 10 basis points across tenors. The revision in MCLR is effective from April 15, 2023. The benchmark one-year MCLR is up by 10 basis points to 8.50 per cent, it said. The one-year rate is used to fix most consumer loans such as auto, personal and home loans. The overnight and one-month tenor MCLRs are raised by 0.10 per cent to 7.90 per cent and 8.10 per cent each while the six-month maturity bucket increased to 8.40 per cent.

How banks' lending rates have gone up faster than deposit rates

According to ICICI Securities, with the credit-deposit ratio at 75.3 per cent, this could put further pressure on deposit rates

Private banks slower than public sector banks in raising interest rates

The hike in lending rates of all scheduled commercial banks on outstanding loans since May 2022 has been only 95 bps

State-owned Indian Bank hikes lending rates by up to 25 basis points

State-owned Indian Bank on Monday increased lending rates, including the marginal cost of funds-based lending rates (MCLR), by up to 25 basis points. The new rates are effective from January 3, Indian Bank said in a regulatory filing. The Asset Liability Management Committee (ALCO) of the bank has reviewed the Marginal Cost of funds based Lending Rate (MCLR), Treasury Bills Linked Lending Rates (TBLR), Base Rate and Benchmark Prime Lending Rate (BPLR) and decided for an upward revision in MCLR, TBLR, Base Rate and BPLR across various tenors, it noted. The one-year rate is used to fix most consumer loans, such as auto, personal and home loans. The overnight MCLR rate has been revised upward by 25 basis points to 7.75 per cent, while that of one month to six months tenure hiked by 20 basis points, the bank said. For one-year maturity, it said the new rate will be increased to 8.30 per cent against 8.20 per cent. Besides, the lender also revised the treasury bills benchmark lending

LICHF hikes lending rate by 0.35 pc, home loans to cost 8.65 pc now

Mortgage lender LIC Housing Finance joined peers and hiked its lending rate by 0.35 per cent. The move, which comes a week after an increase by bigger rival HDFC by a similar quantum, entails that the minimum rate of interest will get revised to 8.65 per cent for the best-rated borrower. In a statement, the company said it has increased the LIC Housing Prime Lending Rate (LHPLR), to which the interest rate on its loans is linked, by 0.35 per cent. "The increase in rates is in tune with the market conditions," the company's managing director and chief executive Y Viswanatha Gowd said. He added that there is good sustenance in the home-buying activity in the real estate sector at present. It can be noted that the Reserve Bank has hiked the repo rate, at which it lends to the system in five consecutive moves by a cumulative 2.25 per cent since May this year. Lenders in the system have responded to the hikes affected by the RBI.

Govt raises PSB CEO term to 10 years, seeks younger talent at the top

A candidate can be appointed for 5 years initially, extendable for another five years; this is also applicable for executive directors who are also wholetime directors

HDFC retail loan demand at 8-year high, standalone net profit rises 18%

Shifted from quarterly reset for individual loans to monthly one

Private banks' net profit soars on healthy loan growth, higher margins

NIMs expanded as banks hiked rates on lending faster than those on deposits

MPC after-effect: SBI, ICICI Bank, YES Bank, BoI raise lending rates

The hike in lending rates shall be applicable to home loans and consequently, equated monthly instalment payments made by customers.

LIC Housing Finance, Bajaj Housing Finance hike lending rates by 0.5%

Mortgage lenders Bajaj Housing Finance and LIC Housing Finance on Monday announced a 0.50 per cent hike each in their lending rates. The revisions come amid a rising interest rates scenario, which has seen the RBI hiking its key lending rate by 1.40 per cent since May to tame inflation. Bajaj Housing Finance hiked its rate by 0.50 per cent, and the lowest priced product for the salaried and professional applicants will be 7.70 per cent now, as per an official statement. Despite the latest hike, the company claimed to be offering loans at competitive rates compared to most of its peers. LIC Housing Finance has increased its prime lending rate (LHPLR) by 0.50 per cent and the new interest rates on home loans will now start from 8 per cent as against 7.50 per cent previously. The company's chief executive and managing director Y Viswanatha Gowd said the RBI's decision to hike the repo rate by 0.50 per cent has caused "minimum fluctuation" in monthly instalments or tenure of home loan

Expecting to sustain loan growth of 15% in current fiscal: SBI chairman

The country's largest lender reported a 14.93 per cent rise in advances to Rs 29,00,636 crore in the first quarter ended June 30, 2022 as compared to Rs 25,23,793 cr during the same period a year ago

China hits 'liquidity trap' as low lending rates fail to spur bank loans

China's Central bank data showed a sharp slowdown in aggregate financing, a broad measure of credit, in July, as new loans and corporate bond issuance weakened

MCLR more effective in policy transmission than base rate regime: RBI paper

Using different models, the paper estimates the degree of pass-through of monetary policy to bank lending rates under both the base rate and the MCLR regimes using dynamic panel data regression.

Ahead of festive season, lenders have a new worry of sub-9% deposit growth

Credit to industry has also expanded 9.5 per cent during this period

ICICI Bank, Bank of India, Indiabulls hike rates ahead of MPC meeting

The revised rates for new borrowers range between 7.80 per cent and 8.30 per cent, depending on credit and loan amount

ICICI Bank raises lending rate by 15 bps ahead of RBI MPC meeting

ICICI Bank, the second-largest private sector lender, on Monday raised its lending rates by 0.15 per cent across all tenors in anticipation of a rate hike by the RBI later this week.

HDFC raises benchmark lending rate, RPLR by 25 bps with effect from Aug 1

Housing Development Finance Corp Ltd hiked its benchmark lending rate by 25 basis points, with effect from August 1, the company said in an exchange filing

Bank of Maharashtra bucks the trend, cuts MCLR by 20-35 basis points

The state-owned lender cut overnight and one-month MCLR by 25 bps to 6.90 per cent and 7 per cent