Public sector Indian Bank on Monday increased the Marginal Cost of Funds Based Lending Rate (MCLR) based interest rate by up to 0.25 per cent for loans of different durations. In a notification sent to the stock exchanges, Indian Bank said that this hike will be applicable from January 3.
What are the new interest rates?
The MCLR for one year will be increased from 8.20 per cent to 8.30 per cent. Whereas, auto, personal and home loan rates are decided based on a one-year MCLR only.
The overnight MCLR rate will also be increased by 0.25 per cent to 7.75 percent. While the MCLR rate will be increased by 0.20 percent on loans of one month to six months.
Indian Bank revised the interest rates on FDs of less than Rs 2 crore last month and these new interest rates are effective from December 19, 2022. Indian Bank has launched a special FD scheme named IND SHAKTI 555 DAYS. In a minimum amount is Rs 5000 and will run for 555 days with an interest rate of 7.00% for the general public and 7.15% for senior citizens.
Effect of increase in repo rate
Explain that in this scheme, starting from Rs 5000 for 555 days, higher interest rates are being offered for the investment of fewer than 2 crores. The bank is offering an interest rate of 2.80% on FDs maturing in the next 7 to 29 days, and Indian Bank is offering an interest rate of 3.00% on FDs maturing in the next 30 to 45 days. On FDs maturing in 46 days to 90 days, Indian Bank is offering an interest rate of 3.25%, and on FDs maturing in 91 days to 120 days, the bank is promising an interest rate of 3.50%.
On the other hand, last month, in the monetary policy meeting of the Reserve Bank of India, the policy interest rates were increased for the 5th time in a row. This time the MPC members had increased the policy rates by 35 basis points, after which the repo rate has come down to 6.25 per cent. 5 out of 6 members voted for 35 basis points. This year RBI has increased the interest rates up to 2.25 percent.
