New Delhi: Punjab National Bank (PNB) has cut the marginal cost of funds based lending rate (MCLR) by 0.05-0.10 percentage points for December across maturities of various tenors.
The bank has reduced the MCLR with effect from 1 December 2016, it said in a regulatory filing.
For a tenor of five years, the new MCLR is down by 0.05% to 9.45%. While that for three-years, one-year, six-month, three-month, one-month and overnight tenor it has been cut by 0.1% each in range of 9.30% to 8.90%.
Private sector lender South Indian Bank said, it has cut the MCLR in range of 0.05 to 0.3% for a select maturity period. For a six-month tenor, the lending rate will be 0.05% lower at 9.45%, while that for one month and overnight period it is cut by 0.3% each to 9% and 9.05% respectively.
The three-month tenor MCLR will be down 0.25% at 9.15% for South Indian Bank.
MCLR is the new benchmark lending rate replaced by the Reserve Bank of India (RBI) earlier this year.
Calculated on the marginal cost of borrowing and return on net worth for banks, it has been introduced to ensure fair interest rates to borrowers as well as banks. The MCLR rates are revised every month.