te Brace for bigger EMI: Despite RBI's surprise pause, this private lender hikes key interest rate | Zee Business

Brace for bigger EMI: Despite RBI's surprise pause, this private lender hikes key interest rate

The RBI implemented MCLR on April 1, 2016, to determine rates of interest for loans.

Brace for bigger EMI: Despite RBI's surprise pause, this private lender hikes key interest rate
Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which, a bank is not permitted to lend. (Image: Pixabay)

Days after Federal Bank, one of the private lenders in India, recorded 67 per cent growth in its net profit to reach an all-time high of Rs 903 crore, the bank increased its MCLR rate across all tenures by 10 bps on Tuesday.  

Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which, a bank is not permitted to lend. MCLR replaced the earlier base rate system to determine lending rates for commercial banks. The RBI implemented MCLR on April 1, 2016, to determine rates of interest for loans.

The Gross NPA of the Bank as on March 13, 2023, stood at Rs 4,183.77 crore. Gross NPA as a percentage to Gross Advances is 2.36 per cent as on March 31, 2023. The net NPA stood at Rs 1,205.01 crore and the net NPA percentage was 0.69 per cent as on March 31, 2023. The Provision Coverage Ratio stood at 70.02 per cent as on March 31, 2023.

TRENDING NOW

"We have delivered industry-leading outcomes with a net profit at Rs 903 crore QoQ and ROE at an all-time high of 17.48 per cent. The consistent performance exhibited throughout the year has yielded net annual profits of Rs 3010.59 crore, while maintaining benign asset quality across the segments. This very strong performance is a testimony to the dedicated efforts of the team and the trust of our customers. It’s noteworthy that our market share gains across product categories are gathering momentum," added Shyam Srinivasan, Managing Director & CEO, Federal Bank.

 

 

Also Read:  BREAKING | Bharti Airtel Q4 PAT nearly doubles, beats Street estimates; ARPU at Rs 193

Also Read: Bank of Baroda Q4 results: PAT more than doubles, the board announces Rs 5.5 dividend

Written By: ZeeBiz WebTeam
Updated: Tue, May 16, 2023
05:38 pm
New Delhi, ZeeBiz WebDesk
RELATED NEWS
HDFC Bank, PNB, ICICI Bank: These 7 banks have made loans expensive so far this month, revised MCLR rates HDFC Bank, PNB, ICICI Bank: These 7 banks have made loans expensive so far this month, revised MCLR rates
SBI hikes MCLR by 5-10 bps: How will it impact your loans and EMIs? SBI hikes MCLR by 5-10 bps: How will it impact your loans and EMIs?
Punjab National Bank raises MCLR: Loans, EMIs to get costlier Punjab National Bank raises MCLR: Loans, EMIs to get costlier
ICICI Bank revises MCLR: check new loan rates ICICI Bank revises MCLR: check new loan rates
Despite RBI status quo on interest rates, BoB raises MCLR — borrowers' loan EMI burden set to rise Despite RBI status quo on interest rates, BoB raises MCLR — borrowers' loan EMI burden set to rise

By accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.

x