Kotak Mahindra Bank cuts 1-year MCLR rate by 20 bps, hikes for other tenors
The shorter duration MCLR is in the range of 7.80-8.40% while two- and three-year MCLRs are at 8.85% and 9.05%, respectively.
Kotak Mahindra Bank on Wednesday raised its marginal cost of funds-based lending rates (MCLR) by 10 basis points (bps). With this, the lender’s one-year MCLR stands at 8.55%, as per information on its website. The shorter duration MCLR is in the range of 7.80-8.40% while two- and three-year MCLRs are at 8.85% and 9.05%, respectively.
The bank has 69% of the total loan book linked to floating rate, of which 53% is external benchmark linked loan rate (EBLR) and 16% is linked to the MCLR. The loan portfolio linked to fixed rate is 31%, of which loans with duration of less than one year is 22%. In addition to increasing the lending rates, banks are also raising deposit rates to support credit growth. Kotak Mahindra Bank, which has a higher CASA ratio of 56%, has locked in outflows from savings account deposit for a longer-duration term deposit, leading to retail term deposit growth of 16% on a Y-o-Y basis in Q2FY23.
