Friday, September 30, 2022
HomeBusinessRepo Rate: After increasing the repo rate of RBI, which banks including...

Repo Rate: After increasing the repo rate of RBI, which banks including HDFC, ICICI increased the interest rates – know – News

Bank Increased Interest rates: Banks and other financial institutions have also immediately increased the interest rates on their auto loans, home loans and personal loans after the Reserve Bank of India (Reserve Bank of India) increased the repo rate once again. Due to this all these loans have become expensive.

Several banks and financial institutions including ICICI Bank, Bank of Baroda, Punjab National Bank (PNB), Bank of India, Indian Bank, Indian Overseas Bank and country’s leading home loan lender HDFC Ltd have sought to hike loan rates for their customers. The announcement was made in the last two days.

RBI had increased the repo rate on June 8
In its bi-monthly monetary review on June 8, the RBI had announced a major hike in the repo rate by 0.50 per cent. Earlier on May 4 last month, the RBI had suddenly increased the repo rate by 0.40 percent without any pre-determined plan. In this way, in a very short time, a total increase of 0.90 percent has been done in the repo rate. Now the repo rate is 4.90 percent. To deal with inflationary pressures, RBI has decided to increase the repo rate.

ICICI Bank
Soon after, private sector ICICI Bank raised the repo-linked external standard lending rate (EBLR) from 8.10 per cent to 8.60 per cent.

PNB
Public sector Punjab National Bank has also increased the repo-linked lending rate (RLLR) to 7.40 per cent from 6.90 per cent earlier. Public sector Bank of Baroda has also increased the RLLR to 7.40 percent.

HDFC Limited
Private sector HDFC Limited has also increased its retail prime lending rate (RPLR) for housing loans by 0.50 percent.

Indian Bank
Indian Bank has increased RLLR to 7.70 per cent and Bank of India to 7.75 per cent. Chennai-based Indian Overseas Bank has also increased the RLLR to 7.75 per cent. Pune-based Bank of Maharashtra has also increased the RLLR from 7.20 per cent to 7.70 per cent with immediate effect.

Canara Bank
Canara Bank had increased the one-year MCLR from 7.35 per cent to 7.40 per cent with effect from June 7.

SBI
The country’s largest bank State Bank of India revised its EBLR a few days before the announcement of monetary policy.

Why interest rates rise after repo rate hike
RBI gives loans to banks at the repo rate for their short term lending needs. In this way, due to increase in the repo rate, the loans from RBI to the banks become expensive and then they also increase the interest rates on loans given to retail customers on their behalf. From October 1, 2019, all banks will have to lend only at an interest rate linked to an external benchmark such as the RBI’s repo rate or treasury bill yields. Because of this, the pace of adoption of monetary policy by banks has increased rapidly. Most of the customer loans are linked to the one-year MCLR rate. The MCLR system came into effect from April 1, 2016.

Html code here! Replace this with any non empty raw html code and that's it.
AUTO
MOBILE
TECH NEWS

Entertainment

Most Popular