Axis Bank hikes MCLR rates by 10 bps with effect from 18 Nov. Details Here

As per the latest release, at Axis Bank, now 1-year MCLR is around 8.45% effective from November 18 compared to the previous rate of 8.35%. 2-years MCLR is now set at 8.55% from the previous 8.45%, while this benchmark rate is at 8.60% on a 3-years tenure compared to the previous 8.50%.

Furthermore, MCLR for 6-months and 3-months tenure has been raised to 8.40% and 8.35% compared to the previous 8.30% and 8.25% respectively. MCLR for 1-month and overnight tenures is increased to 8.25% each against the earlier 8.15%.

Axis Bank said that “these rates will be valid till the next review.”

Also, the base rate has been kept unchanged at 9.15% since September 17, 2022.

It needs to be noted that base rate and MCLR are reviewed by the bank from time to time and it may or may not change.

However, not all borrowers will face the MCLR hike on their loan repayment, as Axis Bank has adopted the repo rate as the external Benchmark lending rate with effect from October 01, 2019, as part of RBI’s circular. Simply put, all new floating rate loans and credit limits renewed with effect from October 01, 2019, will be linked to the repo rate.

On Friday, Axis Bank shares closed flat at ₹857 apiece on BSE. The stock had touched an intraday high and low of ₹865.85 apiece and ₹855.20 apiece respectively. Its market cap is more than ₹2.64 lakh crore.

During the September 2022 quarter, Axis Bank registered a net profit of ₹5,330 crore rising by 70% yoy, while net interest income (NII) climbed by 31% yoy to ₹10,360 crore. Net interest margin (NIM) for Q2FY23 came at 3.96%, up 57 YOY and 36 QOQ. Meanwhile, gross NPA improved to 2.5% as of September 30, 2022, from 2.76% a quarter ago and 3.53% a year ago.