HDFC Bank hikes lending rates by 0.35%; 2nd hike in two months

HDFC Bank increased its Marginal Cost of funding based Lending Rate by 0.35 per cent from June 7, as per the new rate structure published on its website.The one-year MCLR, on which a bulk of consumer loans are pegged, will be 7.85 per cent after the newest review as against 7.50 per cent earlier.

The country's largest private sector lender HDFC Bank on Tuesday announced a 0.35 percent hike in lending rate.

The hike, which comes a day ahead of the RBI's scheduled policy review, is the second such move from the lender in as many months, taking the cumulative hike to up to 0.60 percent. The RBI had surprised all with a 0.40 percent hike in key interest rates on May 4 to tame the inflation situation and is widely expected to follow up with further tightening of the policy on Wednesday. HDFC Bank increased its Marginal Cost of funding-based Lending Rate by 0.35 percent from June 7, as per the new rate structure published on its website.

The one-year MCLR, on which a bulk of consumer loans are pegged, will be 7.85 percent after the newest review as against 7.50 percent earlier. The overnight MCLR will be 7.50 percent against 7.15 percent, while the three-year MCLR will be 8.05 percent compared to 7.70 percent. It can be noted that the rate hikes come at a time when credit growth is not very high and banks are keen to accelerate on the same. There have been hikes in deposit rates as well, which have preceded the lending rate hikes, along with the change in the policy environment.