New Delhi: Signalling tightening of rates, HDFC Bank on Tuesday raised interest rates on deposits by up to 0.5% for various tenors, while Bank of Baroda hiked lending rates by 0.1%.

In a statement, HDFC Bank said the new interest rate on deposits below Rs1 crore for various tenors will come into effect from Tuesday.

The rate on deposits with tenor of 5-8 years and 8-10 years has been increased to 6.5% from 6%.

The rate has been hiked to 7.25% for fixed deposits of 3-5 years from the earlier 7.1%.

The fixed deposit rate for one-year tenor has been fixed at 7.3%, up from 7.25%.

State-owned Bank of Baroda announced a hike in MCLR effective Wednesday.

The interest rate for different categories of borrowers are pegged at the marginal cost of funds based lending rate (MCLR).

“MCLR has been reviewed at 10 BPS above existing level w.e.f. 7 November, 2018," the bank said in a statement.

The bank’s one-year MCLR will be 8.65%, which is competitive as per the current market scenario, it said.

For all other tenors — overnight, one month, three months and six months — rates are 8.15%, 8.20%, 8.30% and 8.50%, respectively.

The bank further said it does not add any mark-up on its MCLR for its best-rated home loan borrowers.

One-year MCLR, that is 8.65%, is applicable irrespective of the total home loan amount and is available for a tenure of up to 30 years, it added.

The Reserve Bank of India will be announcing its next bi-monthly monetary policy in the first week of December.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed)

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