Key facts
- Canara Bank and Bank of Baroda raised MCLR by up to 5 basis points on certain loan tenures.
- The revised lending rates are effective from June 12, 2026.
- HDFC Bank also increased its MCLR across most loan tenures effective June 8, 2026.
- The Reserve Bank of India kept its repo rate unchanged at 5.25%.
Canara Bank and Bank of Baroda have increased their Marginal Cost of Funds Based Lending Rates (MCLR) by up to 5 basis points on select tenures, with the revised rates effective from June 12, 2026. This move means loans linked to these rates will become more expensive for borrowers.
The decision by the two public sector banks follows the Reserve Bank of India's (RBI) recent monetary policy meeting on June 5, 2026, where the central bank maintained the key repo rate at 5.25%. This indicates a stable interest rate environment from the central bank's perspective, prompting banks to adjust their own lending benchmarks.
Canara Bank revised its MCLRs across several short-term tenors. The overnight MCLR was raised by 5 basis points to 7.95%, the one-month MCLR to 8.00%, the three-month MCLR to 8.25%, and the six-month MCLR to 8.60%. Rates for longer tenures, including one, two, and three years, remained unchanged.
Bank of Baroda also implemented a 5 basis point increase across five tenors. Its overnight MCLR moved to 7.85%, one-month to 7.95%, three-month to 8.20%, six-month to 8.50%, and the commonly used one-year MCLR was raised to 8.75%.
In parallel, HDFC Bank adjusted its MCLR rates on most tenures effective June 8, 2026. Its overnight MCLR increased to 8.10%, three-month to 8.20%, six-month to 8.35%, and one-year to 8.40%. The two-year MCLR saw a 10 basis point hike to 8.55%, while the three-year MCLR rose by 5 basis points to 8.65%. The one-month MCLR remained unchanged at 8.05%.