State-run Bank of India on Thursday said it has increased its marginal cost of funds based lending rate (MCLR) by 0.05 percent for overnight and one month tenure, effective October 10.

The new overnight rate stands at 8.05 percent, while the one month rate has been revised to 8.15 percent, the bank said in a statement.

The lender left the MCLR rates for three, six and 12 months loan tenures unchanged at 8.30 percent, 8.50 percent and 8.60 percent, respectively.

Many state-run lenders have recently increased their MCLRs, with country's largest lender State Bank of India raising it by 0.05 percent for various tenures effective October 1. It's one-year MCLR currently stands at 8.50 percent, against 8.40 percent previously.

Punjab National Bank also increased its benchmark lending rates or MCLR last week for the short-term loans by up to 0.2 percent.

Oriental Bank of Commerce (OBC) raised it's MCLR by 0.10 percent for various tenures with effect from Thursday.

Another state-run lender Syndicate Bank increased its MCLR by 10 basis points or 0.1 percent for loan tenure of three months, effective from Thursday. It's interest rates for loan tenure of three months has been hiked to 8.50 percent from 8.40 percent earlier.

Few mortgage lenders including like Indiabulls Housing Finance, HDFC and LIC Housing Finance have also recently raised home loan rates owing to higher funding costs.

First Published:Oct 11, 2018 4:56 PM IST