State Bank of India (SBI), the country’s largest state-owned lender, has increased lending rates by 10 basis points across all tenors. The marginal cost of funds rate (MCLR) has been increased by 10 basis points across all tenors, with effect from August 15, 2024.
OSEIt’s new MCLR The three-year MCLR now stands at 9.10% from 9% previously, while the overnight MCLR has been increased to 8.20% from 8.10%.
Following are the MCLRs as per SBI tenor which will be effective from 15th August 2024:
This is the third consecutive month that SBI has increased the MCLR. The state-run lender has increased the MCLR by up to 30 basis points (bps) in some tenors since June 2024.
MCLR is the minimum interest rate Below which a bank cannot lend, except in certain cases permitted by the Reserve Bank of India (RBI). The MCLR was introduced by the RBI in April 2016, replacing the earlier base rate system as the benchmark for lending rates.
Previously, other PSU banks like Bank of Baroda, Canara Bankand Banco UCO increased their MCLRs or lending rates at different tenors, resulting in higher costs for consumer loans.
Bank of Baroda and Canara Bank revised the MCLR from August 12, while UCO Bank has increased the loan rate for specific terms, effective August 10, 2024.
This happened after Reserve Bank of India On August 8, the benchmark repo rate was kept unchanged at 6.5%. The Monetary Policy Committee (MPC) of the RBI kept the benchmark interest rates unchanged and also maintained the status quo on the monetary policy stance.
The standing deposit facility (SDF) rate will remain at 6.25%, and the marginal standing facility (MSF) rate and the bank rate will remain at 6.75%.
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