Customers wait in line to exchange Rs 500 and Rs 1,000 banknotes outside a Punjab National Bank branch in New Delhi. (Photographer: Anindito Mukherjee/Bloomberg)

Punjab National Bank Lowers Lending Rates

Public sector lender Punjab National Bank Ltd. on Monday lowered its marginal cost-based lending rates by 10-15 basis points.

Overnight marginal cost of funds based lending rate (MCLR) has been lowered by 15 basis points to 8.05 per cent (one basis point is a hundredth of a percentage point).

For one, three and six months as well as one, three and five years, the new MCLRs have been lowered by 10 basis points each.

The new MCLR for one-year tenure is 8.35 per cent and 8.50 per cent for three years. For the six-month tenure, the new rate is 8.30 per cent, the bank said in a release.

Lakshmi Vilas Bank has also lowered its one-year MCLR by 5 basis points to 9.70 per cent per year.

Banks review the MCLR on a monthly basis.