HDFC Bank Hikes Lending Rates In Select Tenors By 0.05%

Largest private sector lender HDFC Bank Ltd. on Tuesday raised its lending rates by a marginal 0.05% across select loan tenors.

The Mumbai-headquartered lender's asset liability committee, which met on Tuesday, decided to hike the marginal cost of funding based lending rates by 0.05%, officials said.

The hike comes even as there has been no rate action by the Reserve Bank of India in five consecutive policy reviews.

The bank has reported a narrowing of net interest margins after merging its housing finance subsidiary parent HDFC into itself.

Banks also have an external benchmark-linked loan product, which reprices basis the movement in the benchmark like the RBI's repo rate calls.

Under the revised rate structure, the overnight MCLR has been hiked to 8.65% from the existing 8.60% while the new three-year MCLR will be 9.30% as against the existing 9.25%, they said.

However, the one-year MCLR -- to which a bulk of the loans are tied with -- has been left unchanged at 9.20%.