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Syndicate Bank hikes 3 months' MCLR by 10 basis points

State-run Syndicate Bank on Wednesday increased its marginal cost of funds based lending rate (MCLR) by 10 basis points or 0.1 per cent for loan tenure of 3 months.

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State-run Syndicate Bank on Wednesday increased its marginal cost of funds based lending rate (MCLR) by 10 basis points or 0.1 per cent for loan tenure of 3 months. Interest rates for loan tenure of three months has been hiked to 8.50 per cent from 8.40 per cent earlier.

The bank has reviewed MCLR and the new rate would be effective October 10, Syndicate Bank said in a filing to stock exchanges.

Interest rates for loan tenors of overnight, one month, six months and one year remain unchanged to 8.30 per cent, 8.35 per cent, 8.60 per cent, and 8.80 per cent, respectively.

Lenders review the MCLRs every month.

Shares of Syndicate bank were trading 2.18 per cent higher at Rs 30.40 apiece on BSE. 

Meanwhile, Sri Mrutyunjay Mahapatra has taken over as MD & CEO of Syndicate Bank. Mahapatra has 32 years of experience in all major fields of banking, especially corporate credit, leasing, global strategy, payments, transactions and information technology. Earlier, he was Deputy MD and CIO, State Bank of India.

Earlier in September, State Bank of India (SBI) hiked the marginal cost of funds based lending rate (MCLR) by five basis points (bps) across the board with effect from October 1. Since then, several others have followed suit over the last couple of days. ICICI Bank, Punjab National Bank and Housing Development Finance Company (HDFC) have all increased their MCLR and retail prime lending rate (RPLR) by 5-10 basis points.

MCLR is the benchmark lending rate used to lend by banks and RPLR is used by non-banking finance companies. One basis point is one-hundredth of a percentage point.

SBI hiked the rate after the bank's asset liability committee met on the evening of September 27. It said one-year MCLR, which is the benchmark rate to which most of the loans, including to the retail, SME and corporate segments, is 8.5% against 8.45% earlier.

Home loan rates of the lender now range from 8.70% to 8.95%, with women borrowers getting a relaxation of five bps. Loans up to Rs 30 lakh are available at 8.70%, bigger loans between Rs 30 lakh to Rs 75 lakh at 8.85% and all loans above Rs 75 lakh at 8.95%. If there is a reset clause, then the rates on the home loans also get revised.

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