After a mid-cyclic RBI rate hike, banks have begun to increase deposit and lending rates.
Public sector lender Bank of Baroda (BoB) raised lending rate on loans including home and car by 40 basis points. The new rates for home loans would between 6.90 to 8.25 per cent linked to the credit score of the borrower.
Also, private lender ICICI Bank hiked its external benchmark lending rate (EBLR) by 40 basis points or bps to 8.10 per cent with effect from May 4.
ICICI website says, “‘ICICI Bank External Benchmark Lending Rate’ (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 8.10 per cent p.a.p.m. effective May 4, 2022.”
Moreover, the bank also hiked the interest rates on fixed deposits worth less than Rs 5 crore by 25 basis points (bps), which will be be effective from May 5.
The Monetary Policy Committee (MPC) of the RBI on May 3 had voted to increase repo rate by 40 basis points to 4.40 per cent with immediate effect.
Following the hike in the repo rate, the standing deposit facility (SDF) rate stands adjusted to 4.15 per cent and the marginal standing facility rate (MSF) to 4.65 per cent.