The largest private sector lender, HDFC Bank, announced a 0.20 percent increase in the marginal cost of financing-based lending rates across all maturities on Thursday.
This is the lender’s third such move in as many months since May, bringing the total amount of the rate hikes to 0.80 percent.
The RBI has raised rates by a cumulative 0.90 percent since the move to tightening rates in the first week of May as its core inflation management target ran into trouble. Analysts had expected more rate hikes from the central bank in the coming days, as pressure on price hikes is expected to continue.
HDFC Bank said the one-year MCLR, to which many consumer loans are tied, will now stand at 8.05 percent, up from 7.85 percent earlier.
The overnight MCLR will be 7.70 percent against 7.50 percent, while the three-year MCLR will be 8.25 percent, according to the bank’s website.