The State Bank of India offered a Holi gift to its customers by increasing the interest rate given on fixed deposits. The SBI raised the interest rate on FDs by 0.50 per cent. However, the largest lender on Thursday hiked its lending rate by 0.20 percentage point (20 basis points) to 8.15 per cent, with immediate effect, setting the tone for increase in EMIs.
This is the first lending revision by the bank since April 2016 and comes a day after it massively raised the retail and bulk deposit rates. Prior to this, the one year-MCLR (marginal cost of funds based lending rate, on which most of the lending is based now, was at 7.95 per cent.
The six-month MCLR has been raised by 10 basis points to 8 per cent, while the three-year loan pricing goes up by 25 basis points to 8.35 per cent.
For the third consecutive time since November, the bank on Wednesday raised its retail and bulk term deposit rates for various maturities by up to 75 basis points.
For retail deposits, below Rs 1 crore, the rate was increased by up to 0.50 per cent, while for deposits maturing in one year to less than two years, it was hiked by 0.15 per cent to 6.40 per cent.
Meanwhile, Punjab National Bank raised its lending rate by 15 basis points to 8.30 per cent with immediate effect. The lender also increased its retail and build deposit rates by up 45 basis points on various maturities.
The overnight, one-month, three-month and six-month rates were raised by 15 basis points to 7.80 per cent, 7.95 per cent, 8.10 per cent and 8.25 per cent, respectively, PNB said in a statement.
The lender also increased its retail and bulk term deposits by up to 45 basis points. For retail deposits maturing in one-year to three-year, rate has been increased by 25 basis points to 6.75 per cent from 6.50 per cent.
The bulk deposits for one-year maturity has been increased to 6.75 per cent from 6.50 per cent.
(With PTI Inputs)