Punjab & Sind Bank (PSB) has lowered its marginal cost of funds based lending rate (MCLR) by up to 0.10 per cent for a select maturities from today. "As per the guidelines of Reserve Bank, our bank has reviewed the MCLR for different tenors," PSB said in a regulatory filing.
The bank said these rates will be effective from November 7, 2017. The one-month, one-year and three-year tenor of loans have been reduced by 0.05 per cent each to 8 per cent, 8.40 per cent and 8.85 per cent, respectively. The three-month duration loan will attract a rate of 8.10 per cent, down 0.10 per cent from previous rate. Ten Banks That Have Slashed Interest Rates On Savings Bank Accounts
For the overnight and six-month tenors, the MCLRs are unchanged at 8 per cent and 8.20 per cent, respectively. The Asset Liability Committee (ALCO) has also resolved to keep the existing rate of base rate unchanged at 9.70 per cent and benchmark prime lending rate (BPLR) at 14 per cent, the bank added.
The MCLR system was adopted by banks in April 2016 and it is applicable on new loans. However, customers who took loan before this period can migrate to the MCLR system against their existing base rate based interest calculation methodology. Stock of the bank was trading 4 per cent lower at Rs 50.45 on BSE.