Bank of India raises MCLR rates by 0.05% on two tenures

Many state-run lenders have recently increased their MCLRs, with country's largest lender State Bank of India raising it by 0.05 percent for various tenures effective October 1. It's one-year MCLR currently stands at 8.50 percent, against 8.40 percent previously.

Punjab National Bank also increased its benchmark lending rates or MCLR last week for the short-term loans by up to 0.2 percent.

Oriental Bank of Commerce (OBC) raised it's MCLR by 0.10 percent for various tenures with effect from Thursday.

Another state-run lender Syndicate Bank increased its MCLR by 10 basis points or 0.1 percent for loan tenure of three months, effective from Thursday. It's interest rates for loan tenure of three months has been hiked to 8.50 percent from 8.40 percent earlier.

Few mortgage lenders including like Indiabulls Housing Finance, HDFC and LIC Housing Finance have also recently raised home loan rates owing to higher funding costs.