State Bank of India and Bank of Baroda have raised their MCLR by 5-10 bps

Current Context: State Bank of India (SBI) has increased its Marginal Cost of Funds-Based Lending Rate (MCLR) by 5 to 10 basis points (bps) across various tenors, effective from July 15.

• For instance, the one-month MCLR has been revised to 8.35%, while the three-month, six-month, and one-year MCLRs now stand at 8.4%, 8.75%, and 8.85%, respectively.
• Similarly, Bank of Baroda (BoB) has raised its MCLRs by 5 bps on select tenors, effective from July 12.
• BoB’s one-year MCLR now stands at 8.9%.
• This move is likely to impact borrowers’ equated monthly installments (EMIs).

Question:

1 What are the new MCLRs for SBI's three-month, six-month, and one-year tenors, respectively?

• A) 8.4%, 8.75%, and 8.85%
• B) 8.35%, 8.4%, and 8.75%
• C) 8.75%, 8.85%, and 8.9%
• D) 8.5%, 8.75%, and 8.85%

Answer: A) The one-month MCLR has been revised to 8.35%, while the three-month, six-month, and one-year MCLRs now stand at 8.4%, 8.75%, and 8.85%, respectively