PNB cuts MCLR, base rate by up to 25 basis points
PNB has cut marginal cost based lending or MCLR rates by up to 25 basis points for select maturities, effective Friday
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.
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