HDFC raises retail lending rate by 10 bps

Mumbai: Ahead of the Reserve Bank's monetary policy announcement, mortgage lender HDFC Monday increased its retail prime lending rate (RPLR) by 10 basis points with immediate effect.

The new rates vary from 8.80 to 9.05 percent on various slabs of loans.

On Saturday, state-run Punjab National Bank had increased its benchmark lending rates or MCLR for short-term loans by up to 0.2 percent, effective Monday.

With the revision, PNB's overnight marginal cost of funds based lending rate (MCLR) now stands at 8.2 percent as against 7.9 percent.

The MCLR for a one-month tenor were raised to 8.10 percent from 8.05 percent earlier.

In the fourth monetary policy review to be announced on October 5, RBI is expected to raise repo rate by 25 bps.

An increase in the repo rate will be driven mainly on concerns over inflation and a weak rupee.