Public sector lenders Punjab National Bank (PNB) and Bank of Baroda have raised their lending rates by up to 25 basis points following the interest rate hike by Reserve Bank of India earlier this week.

PNB has hiked the Repo Linked Lending Rate (RLLR) by  25 basis points to 9% from 8.75%, effective from today. 

The MCLR for three-month tenure has climbed to 8.30% from 8.25% while that for the one-year tenure has been hiked to 8.55% from 8.50%, PNB said in a regulatory filing.

The Reserve Bank on Wednesday hiked the benchmark policy rate by 25 basis policy rate by 25 basis points to 6.5%, citing sticky core inflation.

It was the sixth time the interest rate has been hiked by the RBI since May last year, taking the repo rate to 6.50%.

Bank of Baroda increased its marginal cost of funds-based lending rate (MCLR) by 5 basis points across all tenures. 

The new rates are effective from 12 February, it said in a regulatory filing. 

After the latest revision, its MCLR has gone up by 5 basis points to 7.90% from 7.85% for the overnight tenure.

The MCLR for one month has been raised to 8.20% from 8.15%.

The MCLR for three-month tenure has increased to 8.30% from 8.25%. The six-month MCLR stands revised to 8.40% from 8.35 per. The MCLR rate for the one-year tenure has been hiked to 8.55% from 8.50%, said Bank of Baroda.