There is a very strong tightening of interest rates. As far as HDFC bank is concerned, the interest rates towards deposits is increased by 0.5 percent for different tenors and a price hike of 0.1 percent is imposed on the Bank of Baroda.
A statement from HDFC pertaining to this regard states that from Tuesday, the new rates shall come to effect, and this is applicable for deposits lesser than Rs 1 crore for various tenor. There is an increase from 6 to 6.5 percent towards deposit rates for a period of 5 to 8 years, and 8 to 10 years.
For fixed deposits, the rate is increased up to 7.25 percent for the tenure of 3 to 5 years. The earlier rate is 7.1 percent.
For fixed deposits with a period of 1 year tenor, the rate is kept as 7.3 percent whereas the same was earlier at 7.25 percent.
The Bank of Baroda had already announced about a hike in MCLR that was said to come to effect on Wednesday.
For the various categories, the rate of interest is set at Marginal Cost of Funds based Lending Rate or MCLR.
With effect from 7th November 2018, MCLR was under review at 10 BPS, said the bank.
For one year, the MCLR will be 8.65 percent. This is a competitive rate according to the prevailing present scenario.
For the other ranges of tenor including overnight, monthly or three or six months, the rates are 8.15 percent, 8.20 percent, 8.30 percent and 8.50 percent.
There is going to be no kind of mark up to the MCLR for home loan buyers, the bank clarifies.
Regardless of the overall home loan amount, the MCLR for one year will remain 8.65 percent. This shall be made available for tenure period of until 30 years.
Details about the following bi-monthly monetary policy shall be announced by the Reserve Bank of India during December first week.