Largest private sector lender HDFC Bank on Tuesday raised its lending rates by a marginal 0.05 per cent across select loan tenors.

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The city-headquartered lender's asset liability committee, which met on Tuesday, decided to hike the marginal cost of funding based lending rates by 0.05 per cent, officials said.

The hike comes even as there has been no rate action by the Reserve Bank of India (RBI) in five consecutive policy reviews. The bank has reported a narrowing of net interest margins after merging its housing finance subsidiary parent HDFC Ltd into itself.

Banks also have an external benchmark-linked loan product, which reprices basis the movement in the benchmark like the RBI's repo rate calls.

Under the revised rate structure, the overnight MCLR has been hiked to 8.65 per cent from the existing 8.60 per cent, while the new three-year MCLR will be 9.30 per cent as against the existing 9.25 per cent, they said.

However, the one-year MCLR -- to which a bulk of the loans are tied with -- has been left unchanged at 9.20 per cent.

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