These banks increased interest rates after surprise RBI repo rate hike
State-owned Indian Bank is the latest lender which has decided to revise the repo-linked lending rate with effect from May 9, after the Reserve Bank of India (RBI) hiked the key repo rate earlier this week.So far, private sector lenders ICICI Bank has revised its external benchmark lending rate (EBLR) to 8.10 per cent, and the state-owned Bank of Baroda has raised the rate to 6.90 per cent with immediate effect.Likewise, two other public sector banks — Bank of India and Central Bank of India — have also raised the repo-linked lending rate.A number of banks raised their external benchmark based lending rates following an increase of 0.40 per cent in the repo rate – at which the Reserve Bank lends short term money to banks.Here’s the list of banks which revised their interest rates:Indian Bank: The revised lending rate of the bank shall be effective from May 9 for new customers and from June 1 for all the existing customers of the bank, the bank said. “The Asset Liability Management Committee (ALCO) of the bank has reviewed the lending rate for all loans/advances linked with policy repo rate and revised the lending rate linked with policy repo rate based on repo from 4 per cent to 4.40 per cent,” Indian Bank said in a regulatory filing.HDFC Bank: The country’s largest mortgage lender Housing Development Finance Corporation (HDFC) announced 0.30 per cent increase in its home loans. “HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 30 basis points, with effect from May 9, 2022,” HDFC said in a statement.Punjab National Bank: The state-owned bank has increased the repo-linked lending rate from 6.5 per cent to 6.9 per cent with effect from June 1 for existing customers, according to an official statement issued by PNB.The revised RLLR will take effect from May 7 for new customers, it added.The PNB has also increased interest rates on term deposits in selected buckets up to 60 basis points with effect from Saturday. “The revised interest rates will be applicable to fresh deposits and renewal of existing deposits with effect from May 7 this year,” said an official statement.ICICI Bank: It has revised the external benchmark lending rate (EBLR) to 8.10 per cent. The rate increase in the EBLR will push up the cost for most of the personal loans, auto and home loans for customers.”ICICI Bank External Benchmark Lending Rate (I-EBLR) is referenced to RBI policy repo rate with a mark-up over repo rate. I-EBLR is 8.10 per cent p.a.p.m. effective May 4, 2022,” the bank said.The EBLR moves up or down in accordance with the movement in the repo rate.Bank of Baroda: The state-owned Bank of Baroda also revised the external benchmark linked lending rate, with effect from May 5.”For retail loans applicable BRLLR is 6.90 per cent with effect from May 5, 2022 (current RBI repo rate:4.40 per cent plus mark up of 2.50 per cent),” Bank of Baroda said. BoB had introduced Baroda Repo Linked Lending Rate (BRLLR) in respect of all retail lending products from October 2019.Kotak Mahindra Bank Ltd: The bank announced a rate increase in fixed deposit (FD) interest rates across multiple tenor baskets for retail customers. The increase is effective from May 6, on all deposits below ₹2 crore.Bandhan Bank: It has increased interest rates on fixed deposits of less than ₹2 crore maturing in one to two years by 50 basis points.Jana Small Finance Bank: It has revised interest rates on FDs by 25 Bps with effect from May 5.(With inputs from agencies)
ABOUT THE AUTHOR
Follow the latest breaking news and developments from India and around the world with Hindustan Times’ newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we’ve got you covered.
…view detail
