Bad News for Loan Borrowers! PNB, BoB Raise Lending Rates by up to 25 bps

New Delhi: Leading public sector lenders Punjab National Bank (PNB) and Bank of Baroda (BoB) have raised their lending rates by up to 25 basis points following the interest rate hike by Reserve Bank earlier this week. PNB in a regulatory filing said it has effected a 25 basis point increase in the Repo Linked Lending Rate (RLLR) from 8.75 percent to 9 percent effective from Thursday.

The Reserve Bank on Wednesday hiked the benchmark policy rate by 25 basis points to 6.5 percent, citing sticky core inflation. It was the sixth time the interest rate has been hiked by the Reserve Bank of India (RBI) since May last year, taking the total quantum of increase to 250 basis points. (Also Read: Price Drop Alert! Samsung Galaxy S23 Ultra Gets Price Cut of Rs 8000: Check Discount Offer on Amazon and Flipkart)

BoB increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across all tenures. The new rates are effective from February 12, BoB said in a regulatory filing. After the latest revision, its MCLR has risen from 7.85 percent to 7.90 percent for the overnight tenure. (Also Read: RBI Hikes Key Lending Rate by 25bps, Home Loans To Get Costlier- Know How to Minimise Rising EMIs)

The MCLR for one month has been raised from 8.15 percent to 8.20 percent. The MCLR for three-month tenure has climbed from 8.25 percent to 8.30 percent while that for the one-year tenure has been hiked from 8.5 percent to 8.55 percent, it said.