New Delhi: Big news for everyone. The effects of the RBI’s repo rate increase last month are now reaching ordinary people’s pockets. Several public and private banks have raised their lending rates, including major institutions such as HDFC Bank, SBI, PNB, and Bank of Baroda. Here’s a look at their updated rates.
Which banks raised their rates, and by how much?
State Bank of India was the first to increase its MCLR by 15 basis points (0.15%) across the 3-month, 6-month, 1-year, 2-year, and 3-year tenors, effective October 15. Punjab National Bank followed, raising rates by 10 basis points on loans with tenors ranging from overnight to three years.
Bank of India also raised rates by 10 basis points for the 3-month, 6-month, 1-year, and 3-year tenors. The new rates at both banks took effect on November 1.
HDFC, the country’s largest private-sector bank, raised its MCLR by 5 to 15 basis points across all seven tenors, effective November 7.
Canara Bank increased rates by 10 basis points across all tenors. Bank of Baroda raised its MCLRs by 5 to 20 basis points for the 1-month, 3-month, 6-month, and 1-year tenors, effective today, November 12.
What is the MCLR?
MCLR is the minimum interest rate below which a bank cannot lend to customers. When this rate rises, new loans and repayments on existing loans become more expensive.
What is the repo rate?
In October, the RBI announced the Monetary Policy Committee’s (MPC) decision to raise the repo rate by 25 basis points to 5.50%. The RBI had previously cut the rate by a total of 125 basis points between February 2025 and December 2025, but rates have now begun to rise again.