New Delhi: Inflation in the country is currently at an all-time high. As a result, the Reserve Bank of India (RBI) has been forced to raise the repo rate for the second time in a short time. With the RBI raising the repo rate, banks have started raising interest rates. Loan EMIs continue to rise due to rising interest rates.
The Reserve Bank has raised the repo rate for the second time in a month to curb uncontrollable inflation. Earlier, the RBI had hiked the repo rate by 0.40 per cent in May. Following the MPC meeting in June (RBI MPC Meet June 2022), the central bank again announced a 0.50 per cent hike in the repo rate. Thus, the repo rate rose 0.90 per cent to 4.90 per cent in May-June. The latest increase in repo rate this week is Wednesday. Born on June 8th. In just 24 hours, 7 banks announced interest rate hikes.
ICICI Bank: The second largest private sector bank after the Reserve Bank’s announcement was at the forefront of imposing increased interest rates on customers. ICICI Bank on Thursday raised its benchmark lending rate by 0.50 per cent to 8.60 per cent. According to a notification on ICICI Bank’s website, the increased rates of External Benchmark Lending Rate (EBLR) have come into effect from June 8. Along with this the bank has also increased the MCLR. The increased rates of MCLR have come into effect from 01st June. Overnight, the MCLR for one month and three months is now 7.30 per cent and 7.35 per cent, respectively, the bank said. Similarly, the revised MCLR is 7.50 per cent for six months and 7.55 per cent for one year.
Bank of Baroda: Bank of Baroda has announced an increase in Baroda Repo Linked Lending Rate (BRLLR). The bank said the rate has now risen to 7.40 per cent. Of this, 4.90 per cent is part of the RBI’s repo rate. Apart from this, the bank has added a mark-up of 2.50 per cent. Bank of Baroda said on Thursday that the new rates have come into effect from June 09.
Punjab National Bank: Punjab National Bank has increased the repo linked lending rate (RLLR). The second-largest public sector bank said it has now raised the repo-linked lending rate (RLLR) to 7.40 per cent. PNB’s increased interest rates have also come into effect from June 9.
Bank of India: Bank of India has also posted information on raising interest rates on its website. Bank of Baroda said it has now raised the repo-based lending rate (RBLR) to 7.75 per cent. Bank of India said it has decided to raise interest rates after the Reserve Bank raised the repo rate to 4.90 per cent.
HDFC Limited: HDFC Limited is the largest housing finance company in the country. HDFC Ltd said it has raised the benchmark retail prime lending rate (RPLR) for housing loans. HDFC Limited’s Adjustable Rate Home Loan (ARHL) is based on this rate. The company has hiked the rate by 0.50 per cent. The company told BSE that the increased rates came into effect from June 10.
Indian Overseas Bank: Indian Overseas Bank has also reported raising interest rates in regulatory filings. Indian Overseas Bank said it has decided to increase the repo-linked lending rate (RLLR) to 7.75 per cent. This includes a repo rate of 4.90 per cent and a margin of 2.85 per cent. The bank said the increased interest rates have been in effect since June 10.
HDFC Bank: The country’s largest private bank has raised interest rates on everything from housing loans to car loans and personal loans. However, the bank had hiked interest rates even before the RBI’s announcement. The bank has raised the repo-linked lending rate (RLLR) by 0.50 per cent to 7.40 per cent. Apart from this, interest rates on other non-RLL loans have been hiked by 0.35 per cent
