South Indian Bank on Tuesday announced that it will hike its lending rates (Marginal Cost of Funds Based Lending Rates (MCLR)) by 5 to 10 basis points (bps). The lender will raise its lending rates from April 20, 2023.
The overnight lending rate will increase from 8.70 percent to 8.80 percent, registering an increase of 10 bps. The one-month lending rate will also increase from 8.75 percent to 8.85 percent while the three-month lending rate will be increased from 8.85 percent to 8.95 percent.
The bank has also revised the six-month lending rate from 9.05 percent to 9.10 percent, which is an increase of 5 bps. The one-year lending rate will also increase by 5 bps from 9.40 percent to 9.45 percent.
South Indian Bank’s marginal cost of funds-based lending rates for various tenures are as follows:
| Tenures | Revised Loan Rates (%) | Previous Loan Rate (%) |
| Overnight | 8.80 | 8.70 |
| One month | 8.85 | 8.75 |
| Three months | 8.95 | 8.85 |
| Six months | 9.10 | 9.05 |
| One year | 9.45 | 9.40 |
Earlier, South Indian Bank hiked lending rates by 5 bps across tenures w.e.f. March 20, 2023.
The Reserve Bank of India's norms require banks to review their lending rates every month based on the marginal cost of funds.
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(Edited by : Pradeep John)
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