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.