SBI hikes rates; retail, MSME, corporate loans to be costlier

BL Mumbai Bureau Updated - February 15, 2023 at 04:52 PM.

SBI’s revised benchmark lending rates come into effect today

State Bank of India (SBI) has upped its benchmark lending rates by 10-25 basis points (bps), following the 25 bps increase in the policy repo rate. This will make retail, MSME and corporate loans costlier to that extent.

India’s largest bank has hiked the external benchmark-linked lending rate (EBLR) and the repo-linked lending rate (RLLR) by 25 bps each to 9.15 per cent (from 8.90 per cent) and 8.75 per cent (from 8.50 per cent), respectively. Retail loans are linked to one of these two benchmarks.

SBI has upped the marginal cost of funds-based lending rate (MCLR) by 10 basis points across all tenors. Corporate loans are linked to this benchmark.

The six-month and one-year MCLR are now at 8.40 per cent (8.30 per cent earlier) and 8.50 per cent (8.40 per cent). The revised benchmark lending rates are effective from today.

The Reserve Bank of India’s monetary policy committee had voted by a majority of 4-2 to hike the policy repo rate by 25 bps from 6.25 per cent to 6.50 per cent on February 8.

Published on February 15, 2023 06:11

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