HDFC Bank hikes MCLR by 0.20 pc in third consecutive increase in rates

The country's largest private sector lender HDFC Bank on Thursday announced a 0.20 percent hike in its marginal cost of funding-based lending rate across all tenors.

This is the third such move by the lender in as many months since May and takes the overall quantum of the rate hikes to 0.80 percent.

The RBI has hiked rates by a cumulative 0.90 percent since shifting to rate tightening in the first week of May as it saw its core objective of inflation management getting under trouble. Analysts have been expecting more rate hikes from the central bank in the days ahead as price rise pressures are expected to continue.

HDFC Bank said the one-year MCLR, to which many consumer loans are pegged, will now be 8.05 percent as against 7.85 percent earlier.

The overnight MCLR will be 7.70 percent as against 7.50 percent, while the three-year MCLR will be 8.25 percent, as per the bank's website.