A pedestrian walks past a Punjab National Bank (PNB) branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

PNB Hikes Lending Rates By Up To 10 Basis Points

State-owned Punjab National Bank today raised the marginal cost of funds-based lending rate, the floor rate at which it lends to consumers, for select tenors by 0.05-0.10 per cent.

“The bank has decided to revise the marginal cost of funds based lending rate (MCLR) with effect from July 1, 2018,” PNB said in a regulatory filing.

For loan of a six-month tenor, the borrowing rate will be costlier by 0.10 per cent to 8.40 per cent. While for one, three and five-year loan terms, the new rates are up by 0.05 per cent each to 8.45 per cent, 8.60 per cent and 8.75 per cent, respectively.

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For overnight, one-month and three-month tenor loans, borrowing will be costlier by 0.10 per cent each to 7.90 per cent, 8.05 per cent and 8.20 per cent, respectively.

Another state-owned lender Allahabad Bank revised upwards the MCLR for select tenors by 0.10 per cent, effective tomorrow.

The bank's one year, two years, and three years MCLR will be 8.45 per cent, 8.65 per cent and 8.75 per cent, respectively.

Its overnight, one month, three months and six months MCLR will be 7.95 per cent, 8.05 per cent and 8.25 per cent, respectively.