Effective from June 1, the new rates have been implemented, as stated in a regulatory filing by PNB. This adjustment follows an unscheduled rate increase by the Reserve Bank in May, where the repo rate, the rate at which the central bank lends short-term money to banks, was raised by 0.40 percent to 4.40 percent.
In light of this revision, the one-year MCLR has been raised to 7.40 percent from its previous 7.25 percent. It is important to note that a majority of loans are tied to the one-year MCLR rate.
The overnight, one-month, and three-month MCLR have seen increases of 15 basis points each, resulting in rates of 6.75 percent, 6.80 percent, and 6.90 percent, respectively. Simultaneously, the six-month MCLR has risen to 7.10 percent.
Additionally, the three-year MCLR has experienced a 0.15 percent increase, reaching 7.70 percent. This adjustment will lead to an increase in Equated Monthly Installments (EMIs) for borrowers who have availed loans based on MCLR (Marginal Cost of Funds based Lending Rate).