HDFC Bank, the country’s largest private sector bank, has announced a 0.35 per cent increase in interest rates on loans.
The bank said on its website on Tuesday:
The MCLO ratio for debt is increased by 0.35 percent. Following this, the MCLO rate for one year is raised from 7.50 per cent to 7.85 per cent. The overnight MCLO ratio will increase from 7.15 per cent to 7.50 per cent and the three-year MCLO from 7.70 per cent to 8.05 per cent. The interest rate hike is said to come into effect from June 7.
HDFC Bank has raised interest rates on loans for the second time in two months. Overall, the bank raised interest rates to 0.60 percent.
HDFC Bank issued the interest rate announcement on Wednesday, ahead of the Reserve Bank’s monetary policy announcement.
On May 4, the Reserve Bank of India announced a 0.40 per cent hike in interest rates on loans to curb inflation. With inflation out of control, market experts predict that the Reserve Bank will further raise interest rates on loans in its monetary policy on Wednesday.