People walk past a Punjab National Bank branch in Mumbai. (Reuters)
People walk past a Punjab National Bank branch in Mumbai. (Reuters)

Punjab National Bank to cut lending rates by 10 bps on 1 March

  • The cut in lending rate based on MCLR will apply on loans of various tenors, says Punjab National Bank (PNB)
  • The one-year tenor loans, against which most of the consumer loans are benchmarked, has been cut to 8.45% from 8.55%

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% from 8.55%.

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

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

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

Country's largest lender SBI on February 8 had announced to cut home loan rates by 0.05 percentage point for loans up to 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%, paving the way for banks to make consumer loans cheaper.

This story has been published from a wire agency feed without modifications to the text.

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