Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Industry / Banking/  Canara Bank hikes lending rates by 10-40 bps
BackBack

Canara Bank hikes lending rates by 10-40 bps

This comes a few days after the monetary policy committee, through its 40 basis point repo rate hike on 4 May, decided to reverse the cut effected during the pandemic in May 2020.

Public sector lender Canara Bank on Saturday said it has hiked its lending rates between 10-40 basis points (bps). .mint (MINT_PRINT)Premium
Public sector lender Canara Bank on Saturday said it has hiked its lending rates between 10-40 basis points (bps). .mint (MINT_PRINT)

MUMBAI : Public sector lender Canara Bank on Saturday said it has hiked its lending rates between 10-40 basis points (bps).

While the bank has passed on the entire 40 bps hike in the repo rate to customers whose loans are linked to the benchmark, the hike is marginal cost of funds based lending rate (MCLR) has been restricted to 10 bps, across tenors.

This comes a few days after the monetary policy committee (MPC), through its 40 basis point (bps) repo rate hike on 4 May, decided to reverse the cut effected during the pandemic in May 2020.

The central bank has been indicating that the days of easy money policy are all but over as the war-induced factors push inflation up. On 8 April, the MPC indicated its intent to exit the “ultra-accommodative" stance it took during the pandemic and decided to prioritize inflation over growth as runaway commodity prices threaten to upend its price stability goal.

That said, experts believe that the central bank would continue to hike rates in the coming meetings in order to reach levels seen before the covid-19 pandemic set in.

“With the current hike of 40 bps in repo rate to 4.40% it seems the rate cycle has made a U-turn (from the steep cuts seen in early 2020) and the RBI would continue to increase the rates going forward and may reach the pre-pandemic level of 5.15% by end-March 2023," Soumya Kanti Ghosh, group chief economic advisor, State Bank of India said in a note on 4 May.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Shayan Ghosh
Shayan Ghosh is a national editor at Mint reporting on traditional banks and shadow banks. He has over 12 years of experience in financial journalism. Based in Mint’s Mumbai bureau since 2018, he tracks interest rate movements and its impact on companies and the broader economy. His interests also include the distressed debt market, especially as India’s bankruptcy law attempts recoveries of billions worth of toxic assets.
Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 07 May 2022, 06:45 PM IST
Next Story footLogo
Recommended For You
Banking Stocks
₹1,053.6-0.5%
₹1,440.70.52%
₹1,0841.08%
₹122.751.3%
₹734.052.53%
Switch to the Mint app for fast and personalized news - Get App