On Wednesday, the state-run Punjab National Bank said it will lower down its MCLR or marginal cost based lending rate by 0.1% for different tenures from March 1. In a regulatory filing, the bank said there is a reduction in the marginal cost of funds based lending rate (MCLR) with effect from March 1, 2019.
MCLR rate for one-year loans against which most type of loans are benchmarked now stands at 8.45% in comparison to 8.55% earlier. Similarly, the 3-year MCLR rate has also been slashed to 8.65%.
The MCLR rate for other tenures including overnight, one/three/six months have also been reduced to 8.05%, 8.10% and 8.15% respectively. Nonetheless, base rate has been kept unchanged at 9.25%.
In the sixth bi-monthly policy review meet, the RBI reduced repo rate by 25 basis points to 6.25%, making way for banks to lend at a cheaper rate.