With effect from June 1, country's largest lender State Bank of India (SBI) raised its marginal cost of funds based lending rates (MCLR) by 10 basis points across the tenors. The overnight MCLR has been raised to 7.9 per cent with effect from Friday. The one-month MCLR, likewise, has been raised to 7.9 per cent, 10 basis points higher than the earlier rate. The three month MCLR will now stand at 7.95 per cent. The State Bank of India (SBI's) six-month MCLR has been increased to 8.1 per cent. Similarly, the one-year MCLR, two-year MCLR and three-year MCLR have been raised to 8.25 per cent, 8.35 per cent and 8.45 per cent. The increase of SBI fixed deposit (FD) rates that took place on May 28 has led to the increase in lending rates. Check the SBI's latest FD rates here.
MCLR is the minimum rate below which commercial banks cannot lend to its customers. The Reserve Bank of India (RBI), in April 2016 unveiled the concept of MCLR, which sought to remove much of the discretion commercial banks have to set lending rates.
SBI's Marginal Cost of Funds Based Lending Rates with effect from June 1
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