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HDFC Bank raises its interest rates: The bank has increased its marginal cost of funds-based lending rates (MCLR) by 5-15 basis points (bps) for all tenures. These updated interest rates for loans will come into effect from May 8, 2023, according to information on HDFC Bank’s website.
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HDFC Bank Raises Rates
As per the information on the bank’s website, the overnight MCLR has been revised to 7.95%. For a one-month period, the MCLR will be 8.10%, while for three-month and six-month tenures, the MCLRs will be 8.40% and 8.80% respectively. In addition, the one-year MCLR, which is associated with various consumer loans, will now be 9.05%, the two-year MCLR will be 9.10%, and the three-year MCLR will be 9.20%.
Lending rates hike by HDFC Bank will be effective today; 8 May 2023. Acknowledge the rate hike:
Overnight: 7.95%
1 Month: 8.10%
3 Month: 8.40%
6 Month: 8.80%
1 Year: 9.05%
2 Year: 9.10%
3 Year: 9.20%
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Following a series of repo rate hikes by the Reserve Bank of India (RBI) since May 2022, the situation for home loan borrowers has worsened. Equated monthly instalments (EMIs) have already seen significant increases since May 2022, and they are expected to rise further due to continuous hikes in lending rates by banks.
HDFC Bank was recently given permission by the Reserve Bank of India (RBI) to fulfill its PSL (Priority Sector Lending) requirements gradually over a period of three years to smoothen its merger with its parent company, Housing Development Finance Corp. According to RBI’s guidelines, at the end of the first year after the merger, one-third of HDFC’s loan book will be taken into account to calculate the PSL required for the combined entity. As of May 5th, HDFC Bank’s market capitalization was valued at over ₹9.07 lakh crore, while HDFC’s market cap was valued at over ₹4.95 lakh crore.
