IOB raises MCLR by 0.05 per cent on various maturities

Indian Overseas Bank (IOB) has raised its marginal cost of funds based lending rate (MCLR) by 0.05 percent for various maturities with effect from Monday.

"Our bank has increased the MCLR by 0.05 percent across all tenors except overnight tenor with effect from September 10, 2018," it said in a regulatory filing Friday.

The one-year MCLR, the rate on which most of the retail loans are benchmarked, has been increased to 8.70 percent, as against 8.65 percent currently.

Two year and three-year MCLRs are raised by 0.05 percent each at 8.80 percent and 8.90 percent, respectively.

For one-three-six month tenors, the new rates will be up by 0.05 percent each at 8.20 percent, 8.40 percent, and 8.50 percent.

The overnight MCLR is kept unchanged at 8.05 percent.

The hike in MCLR rate follows industry leader SBI that has raised the one-year rate by 0.20 percent to 8.45 percent last week.

ICICI Bank, Bank of Baroda and Vijaya Bank too have announced the rate hike.

Shares of Indian Overseas Bank closed 0.67 percent up at Rs 14.90 apiece on BSE.