HDFC Bank raises overnight MCLR by 5 bps to 9.20%

HDFC Bank, India's largest private-sector lender, has increased its marginal cost of funds-based lending rate (MCLR) for the overnight tenure by 5 basis points (bps). The new rate now stands at 9.20%, up from the previous 9.15%.

Following this revision, the bank’s MCLR now ranges between 9.20% and 9.45% across different tenures.

The hike comes despite the Reserve Bank of India’s (RBI) monetary policy committee (MPC) reducing the policy repo rate by 25 bps—marking the first rate cut in five years.

While loans linked to external benchmarks see immediate rate adjustments in response to repo rate changes, MCLR-linked loans typically take up to two quarters to reflect such changes.