Punjab National Bank cuts MCLR rates by 10 bps from 1 March, retail loans to become cheaper

There is a reduction in the marginal cost of funds based lending rate (MCLR) with effect from 1 March, 2019,

Press Trust of India February 28, 2019 10:53:55 IST
Punjab National Bank cuts MCLR rates by 10 bps from 1 March, retail loans to become cheaper
  • There is a reduction in the marginal cost of funds based lending rate (MCLR) with effect from 1 March, 2019

  • The three-year MCLR has been cut to 8.65%

  • The base rate at 9.25% will remain unchanged

New Delhi: State-owned Punjab National Bank (PNB) on Wednesday said it will reduce the MCLR by 0.10 percentage point for various tenor loans from 1 March.

There is a reduction in the marginal cost of funds based lending rate (MCLR) with effect from 1 March, 2019, PNB said in a regulatory filing.

The one-year tenor loans, against which most of the consumer loans are benchmarked, has been cut to 8.45 percent from 8.55 percent.

The three-year MCLR has been cut to 8.65 percent.

Punjab National Bank cuts MCLR rates by 10 bps from 1 March retail loans to become cheaper

Punjab National Bank. Reuters image.

The rates for overnight, one/three/six month MCLRs are also down by 10 basis points each at 8.05 percent, 8.10 percent and 8.15 percent respectively.

Base rate at 9.25 percent will remain unchanged, bank said.

The country's largest lender SBI on 8 February had announced to cut home loan rates by 0.05 percentage point for loans up to Rs 30 lakh.

The Reserve Bank in its last bi-monthly policy review for 2018-19 had cut the key repo rate by 25 basis points to 6.25 percent, paving the way for banks to make consumer loans cheaper.

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