HDFC Bank has made changes to its benchmark Marginal Cost of Funds-Based Lending Rates (MCLR) on select tenures, effective December 7, 2023. The overnight MCLR has been raised by 5 basis points from 8.65% to 8.70%. The one-month MCLR of HDFC Bank has increased by 5 basis points to 8.75% from 8.70%.
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The three-month and six-month MCLR has been kept unchanged at 8.90% and 9.15%, respectively. The one-year MCLR, which is linked to many consumer loans like home and auto, has been kept unchanged at 9.20%.
| Tenures | MCLR rates |
| Overnight | 8.70% |
| One Month | 8.75% |
| Three Month | 8.95% |
| Six Month | 9.15% |
| One Year | 9.20% |
| Two Year | 9.25% |
| Three Year | 9.25% |
This revision comes a day ahead of the Reserve Bank of India's (RBI) forthcoming Monetary Policy Committee (MPC) announcement, slated for December 8, 2023. Experts anticipate that the central bank will likely keep the repo rate unchanged in its upcoming MPC review.
The RBI's benchmark policy rate (repo) has remained unchanged for the past four bi-monthly monetary policies, standing at 6.5% since February 2023. However, the central bank earlier implemented six consecutive rate hikes, totalling 250 basis points, until the pause in April.
Shaktikanta Das, RBI Governor, in his last policy address, had emphasised that while the repo rates have been raised by 250 basis points, this increase has not been fully transmitted to bank lending and deposit rates.
What this means for borrowers is that there is still room for a potential hike in lending rates. During the period when the RBI increased the repo rate, banks gradually followed suit by raising their lending interest rates.
(Edited by : Amrita)
First Published: Dec 7, 2023 4:45 PM IST
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