ICICI Bank MCLR
According to the ICICI Bank's official website, the overnight MCLR has increased from 7.50 per cent to 7.65 per cent, the one-month MCLR has increased from 7.50 per cent to 7.65 per cent, the three-month MCLR has increased from 7.55 per cent to 7.70 per cent, the six-month MCLR has increased from 7.70 per cent to 7.85 per cent, and the one-year MCLR has been hiked from 7.75 per cent to 7.90 per cent. MCLR was increased by 20 bps by ICICI Bank last month, effective July 1, 2022. Retail customers of ICICI Bank would pay more EMIs for their loans as a result of the increased MCLR.
BOI MCLR
Across all tenors, Bank of India upped its MCLR by 10 basis points, bringing it to 6.80 per cent for overnight tenor, 7.30 per cent for one-month tenor MCLR, 7.35 per cent for 3-year MCLR, 7.45 per cent for six-months MCLR, one-year MCLR to 7.60 per cent; and three-year MCLR to 7.80 per cent. six-month MCLR to 7.45 per cent, one-year MCLR to 7.60 per cent, and three-year MCLR to 7.80 per cent. Earlier, the bank hiked MCLR on 1st July 2022.
PNB MCLR
According to its website, public sector lender Punjab National Bank has raised its MCLR by 10 bps, across all tenors. The revised PNB MCLR rates went into effect on Monday, August 1. PNB's benchmark marginal cost of lending rate for overnight lending climbed from 6.90% to 7.00%, 1-month MCLR hiked from 6.95% to 7.05%, 3-month MCLR hiked from 7.05% to 7.15%, six-month MCLR hiked from 7.25% to 7.35%, 1-year MCLR hiked from 7.55% to 7.65% and 3-year MCLR hiked from 7.85% to 7.95%.
Loan EMIs for both current and new borrowers will rise due to the aforementioned institutions' increased MCLR. Home, vehicles, and personal loans will become costlier as a result of the MCLR rate increase since the EMIs would rise. The RBI is anticipated to raise the repo rate once more at the upcoming MPC meeting to combat inflation. Churchil Bhatt, Executive Vice President Debt Investments, Kotak Mahindra Life Insurance Company, said “The upcoming August RBI policy will likely mark the end of an era characterized by outsized, at-any-cost rate tightening with a 35bps hike in policy rates. MPC may hint at a bit more moderate, data dependent policy adjustments thereafter, while persisting with ongoing withdrawal of system liquidity. From a medium term perspective, trajectory of Repo Rate remains a function of global inflationary dynamics. In our view, while inflation may have peaked for now, but it is far from dead. Unless supply is augmented in energy and industrial commodities, any growth impulse will lead to an accompanying rise in inflation, especially since the Ukraine situation is far from over. Therefore, any hint of a pause in rate hiking cycle may be treated as just that, with all possibilities open depending upon evolving growth inflation dynamics."
