Kotak Mahindra Bank hikes lending rates by 10 bps across tenures

Kotak Mahindra Bank

Private lender Kotak Mahindra Bank has hiked the marginal cost of funds-based lending rate (MCLR) across various tenures by 10 basis points (bps) for different loan segments.

According to the bank's website, the lending rate for loans across different tenures ranges from 8.35 percent to 9.35 percent. The new rates come into effect from May 16.

MCLR is the minimum rate at which lending rates are calculated.

Other banks have also hiked their lending rates.

Public sector lender Bank of Baroda in February increased its lending rates by 5 bps. Indian Overseas Bank also raised its MCLR-linked rates by 15 bps.

In April, South Indian Bank hiked its lending rates by 5 to 10 bps.

Since May, the RBI has hiked the interest rates by 250 bps to fight inflation. The repo rate, the rate at which the central bank lends to other banks is currently at 6.50 percent.

One basis point is one-hundredth of a percentage point.

Following this, banks have passed on the rate hikes both in lending and deposit rates.