Axis Bank’s one-year MCLR, at which rate its home loans and other important products are priced, will now stand at 8.30%. Photo: Hemant Mishra/MintMumbai: In a surprise move, the third largest private sector lender Axis Bank, which has been facing earning pressure in the past quarters, on Wednesday hiked its lending rates by a marginal 0.05 percentage points. The move to increase the marginal cost of funds based lending rate (MCLR) comes days after the nation’s largest lender State Bank of India (SBI) had lowered its rates under the older base rate system by a steep 0.30 percentage points. “The bank has decided to increase the MCLRs by 0.05 percentage points across all tenors,” Axis Bank said in a regulatory filing late in the evening. Banks calculate the rate on a pre-disclosed formula and rates are reviewed on a monthly basis.

Source: Mint January 17, 2018 16:30 UTC