State Bank of India (SBI), India’s largest lender, has increased its marginal cost of funds-based lending rates (MCLR) by 25 basis points (bps) across tenures. The revised rates are effective 15 December.

As per the SBI website, shorter-duration MCLRs, including overnight to six months, are in the range of 7.85-8.30%. The MCLR for two years is at 8.50% while for the three-year tenure it stands at 8.60%.

The bank’s one-year MCLR now stands at 8.30%, up from 8.05%. The lending rate is similar for six-month tenure.

For one-month and three-month tenures, the cost-based lending rate has been raised to 8% from 7.75% earlier. For overnight tenure, the MCLR is now 7.85%.

The rate revision has come after the Reserve Bank of India (RBI) raised repo rate by 35 bps to 6.25%. Since May, the RBI has increased the benchmark rate by 225 bps.

SBI has raised MCLR by 110 bps since June, including the 25-bps hike in December.

The state-run bank has 75% of its loan book linked to floating interest rates, of which 41% is MCLR linked and the remaining is EBLR linked.

SBI on Tuesday raised its interest rates on deposits by 15-65 bps. For retail deposits with one-year maturity, the bank increased the rate by 65 bps to 6.75%.