Canara Bank increases 5 basis points in lending rates across tenures

Canara Bank lending rates: Canara Bank, a government-owned entity, has recently announced a marginal increase of 5 basis points in its benchmark lending rate across various tenures. This adjustment, disclosed through a regulatory filing, is scheduled to take effect from November 12, leading to a rise in the cost of loans for borrowers.

Specifically, the one-year Marginal Cost of Funds-Based Lending Rate (MCLR) will be adjusted to 8.75 per cent, reflecting a 5 basis point increment from the existing rate of 8.70 per cent. This particular rate plays a pivotal role in determining interest rates for a range of consumer loans, including auto, personal, and home loans.

In addition to the one-year rate, Canara Bank has also raised the overnight, one-month, three-month, and six-month MCLRs by 5 basis points each. This move aligns with the bank's strategic response to prevailing economic conditions and market dynamics.

(With PTI inputs)