Kotak Mahindra Bank and Federal Bank have raised their lending rates, effective from March 16, 2023. While Kotak Mahindra Bank has increased its Marginal Cost of Funds based Lending Rates(MCLR) by 5 basis points across tenures, Federal Bank has hiked the same by 10 basis points. As a result, equated monthly installment (EMI) amount for the borrowers who have taken loans at these rates would go up.

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The increase in rates come days ahead of the Reserve Bank of India's (RBI) monetary policy meeting due in April.

The new rates

Private lender Kotak Mahindra Bank has increased the overnight MCLR to 8.25 percent. The rate for one month has been revised to 8.50 percent. The bank has set rate at 8.65 percent for three months duration and 8.85 percent for six months duration.

(Source: Kotak Mahindra Bank)

The shares of the lender was 0.44 percent down at Rs 1,658.85 on the BSE at the time of writing the report.

For Federal Bank, the overnight MCLR has been revised to 9.05 percent. The rate for one month has been revised to 9.10 percent. The bank has set rate at 9.15 percent for three months duration and 9.25 percent for six months duration.

(Source: Federal Bank)

The shares of the lender was 0.87 percent up at Rs 127.70 at the time of writing the report.

On Wednesday, State Bank of India (SBI) raised the base rate and Benchmark Prime Lending Rate (BPLR). According to the SBI’s website, base rate has been hiked to 10.10 percent from 9.40 percent, an increase of 70 basis points. SBI benchmark prime lending rate has been raised to 14.85 percent from 14.15 percent, an increase 70 basis points.

First Published:Mar 16, 2023 2:26 PM IST