PNB cuts MCLR, base rate by up to 25 basis points
New Delhi: Punjab National Bank has cut marginal cost based lending rates by up to 0.25% for select maturities, effective Friday. The state-owned lender has also slashed its base rate by 0.20% to 9.15%.
“The bank has reduced marginal cost of funds based lending rate (MCLR) by 20-25 basis points with effect from 1 September 2017,” PNB said in a regulatory filing. It has trimmed the MCLR by 0.25% each for overnight to 7.75%.
Besides, it had reduced the MCLR by 0.20% on one- month, three-month and six months maturities to 7.90%, 8% and 8.10% respectively. It has also reduced the MCLR by 0.20% on one- year, three years and five years maturities to 8.15%, 8.30% and 8.45% respectively.
Banks had adopted MCLR from April 2016 following the directive of Reserve Bank of India.
However, a majority of them still follow the base rate or the minimum lending rate formula to charge interest on loans.
MCLR, which is changed every month, is a uniform methodology which was introduced to ensure fair interest rates to borrowers as well as banks. The PNB stock was trading 0.25% lower at Rs141.95 on BSE.