Yes Bank has hiked the marginal cost of lending rate (MCLR) by 10-15 basis points (bps) across all loan tenors. One basis point is equivalent to one-hundredth part of a percentage point. The hike has come in with effect from 2 May 2022.
An overnight MCLR now stands at 6.85 per cent. A one-month MCLR stands at 7.30 per cent. A three-month MCLR stands at 7.45 per cent whereas a six-month MCLR stands at 8.25 per cent. Similarly, MCLR for the tenor of one year stands at 8.60 per cent, as per the Yes Bank’s website.
Tenor-wise MCLR effective from 2 May 2022:
One month 7.30
Three months 7.45
Six months 8.25
One year 8.60
Last month, lenders like the State Bank of India (SBI), Bank of Baroda, Axis Bank and Kotak Mahindra Bank increased their MCLR rates.
Notably, the Reserve Bank in its monetary policy last week kept the repo rate unchanged at 4 per cent. However, it is said to prioritise inflation overgrowth going ahead, as the geopolitical tensions have fuelled price rise across the globe.
How will it impact borrowers?
It means that retail loans for homes, cars, or personal could go higher, and will also affect your Equated Monthly Installments (EMIs).
Meanwhile, YES Bank on Saturday reported ₹367 crore net profit for the fourth quarter of 2021-22 against a loss of ₹3,788 crore recorded in the corresponding period of the last year.
YES Bank had posted ₹266 crore net profit for the third quarter of 2021-22. The bank’s profit during the January-March 2022 period has increased by 38 per cent quarter-on-quarter.
The bank’s profit has increased led by strong net interest income and a sharp decline in provisions.