After the change, the one-year MCLR has been increased from 7.40 to 7.55 per cent. The overnight, one-month and three-month MCLR has been increased by 15 basis points to 6.90, 6.95 and 7.05 per cent, respectively.
The six-month MCLR has been increased to 7.25 percent and the three-year MCLR has been increased to 7.85 percent.
According to a regulatory filing by PNB, the bank has also increased the base rate to 8.75 per cent from 8.50 per cent and the revised rate is effective from July 1, 2022.
On June 1, 2022, PNB increased its lending rate by 15 basis points based on its marginal cost of funds.
The Marginal Cost of Funds Based Lending Rate (MCLR) was established as an alternative to the base rate system, and serves as a benchmark for banks not to lend below. The MCLR varies with the tenure and can range from overnight to three years.
The Reserve Bank of India raised the repo rate by 50 basis points (bps) to 4.90 per cent. As a result of geopolitical tensions and inflationary concerns, interest rates are expected to rise in the coming months.