SBI Hikes Benchmark Lending Rate By 0.2%

Home, auto and other loans would become slightly costlier as the country’s largest lender State Bank of India, today, increased its benchmark lending rates by 0.2 percent.

SBI has increased the lending rate by 20 basis points across all tenors up to three years, the lender said on its website.

• Now SBI’s overnight and one-month tenors’ marginal cost of funds based lending rate stands at 8.1 percent as against 7.9 percent earlier.
• The MCLR for a one-year tenor increased to 8.45 percent from 8.25 percent earlier. Most of the retail loans are benchmarked against one-year MCLR.
• The MCLR for a three-year tenor increased to 8.65 percent from 8.45 percent.

The rate hike by bank comes a month after the Reserve Bank of India hiked benchmark repo rate by 25 basis points to 6.5 percent.

RBI had last raised the repo rate on June 6 by 0.25 percent to 6.25 percent. That increase was the first since Jan. 28, 2014.