Lending rate News

The Reserve Bank of India (RBI) kept its key lending rate steady for a second straight meeting on June 8, as widely expected, but signalled monetary conditions will remain tight for some time as it looks to further curb inflationary pressures.

State Bank of India (SBI) on Wednesday increased the MCLR-linked loans by 10 bps across the overnight and up to three year category of loans -- varying from 7.95 per cent to 8.70 per cent, effective February 15.

The overnight MCLR was raised by Canara Bank by 35 basis points to 7.90 percent, and the one-month MCLR was raised by 45 bps to 8 percent.

Reserve Bank of India (RBI) hiked the repo rate the sixth time to 6.50% in the February 6-8 Monetary Policy Committee meeting to rein high inflation.

Canara Bank introduces a special fixed deposit scheme. The scheme is for a tenure of 666 days and offers 7.50% interest. Canara earlier raised lending rate after Repo rate hike.

Canara bank hiked its benchmark lending rate by 0.15 % on Tuesday. MCLR is the minimum lending rate below which a bank or financial institution can’t afford to lend others. The one-year benchmark is used to fix most customers loans such as auto, personal, and home loans.

State-run IDBI Bank on Tuesday cut its marginal cost of funds based lending rate (MCLR) by up to 0.25 per cent, further establishing the downward trend in interest rates due to the excess liquidity.

Public lender Punjab National Bank has revised down marginal cost based lending rates by 0.10- 0.15 per cent for various maturities effective Monday.

Even though the RBI left the policy rates unchanged at the last policy meet citing upside risks to inflation, borrowers can expect lower rates going forward with second largest private lender HDFC Bank today saying there is more room for banks to lower lending rates.

Finance Minister Arun Jaitley today said that he expected the RBI to cut interest rate but respect its decision to hold status quo.

RBI Governor Urjit Patel today exhorted banks to reduce their lending rates to push credit demand in laggard segments, saying banks have benefited from influx of low-cost deposits and its previous repo rate cuts.

With lenders such as SBI, PNB, Union Bank of India and IDBI slashing benchmark lending rate, India Inc on Monday said the move will act as a "booster dose" for the economy and propel consumption as lending may pick up significantly.

Improvement in funds flow after demonetisation, major public sector banks in the country have set off a regime of low interest rates on consumer loans like home and auto loans.

Talking of the positive outcome of the demonetisation undertaken by government on November 8, 2016, Finance Minister Arun Jaitley said on Sunday that large amount of money, including black money, has come into the banking system.

In a bid to promote project exports, Export-Import Bank of India (Exim Bank) has lowered its credit cost by 0.25 percent.

Deepak Shenoy, market expert and founder of Capital Mind, talks about the current fiscal scenario and effect of the recent RBI rate cut on the Indian economy

Axis Bank, the third largest private sector lender, on Tuesday announced a cut in its lending rate by 0.15 percent to bring it at par with its larger rivals.

To ensure effective transmission of its policy rate decisions by banks, RBI Tuesday proposed a uniform methodology for calculation of their base lending rates on the basis of marginal cost of funds.

Starting a fresh round of rate cuts after repeated calls from RBI, private lender HDFC Bank and state-run Canara Bank Monday lowered their lending rates by up to 0.35 percent, a move that will make home and other loans cheaper for consumers.

A trader who worked for UBS and Citigroup on Monday became the first person to be convicted by a jury in Britain of rigging the benchmark Libor inter-bank lending rate.