Punjab & Sind Bank Cuts MCLR By Up To 20 Basis Points
A Punjab & Sind Bank branch in New Delhi. (Photographer: Anindito Mukherjee/Bloomberg)

Punjab & Sind Bank Cuts MCLR By Up To 20 Basis Points

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State-owned Punjab & Sind Bank on Saturday said it has lowered its marginal cost of funds based lending rate by up to 0.20 percent for various tenors.

"Our bank has reviewed the marginal cost of fund based lending rate for different tenors and the same will be effective from Aug. 16, 2019," Punjab & Sind Bank said in a regulatory filing.

The public sector bank has lowered the benchmark one-year MCLR to 8.50 percent from 8.70 percent earlier. Most of the consumer loans such as personal, auto and home are priced on the basis of the one-year MCLR.

PSB has lowered MCLR on overnight, one-month, three-month and six-month duration loans by 0.15 percent to 8.20 percent, 8.30 percent, 8.40 percent and 8.50 percent, respectively.

It also reduced MCLR on three-year tenor loans by 0.5 percent to 9.20 percent.

The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to reduce the key interest rate by 0.35 percentage point to a nine-year low of 5.40 percent.

Oriental Bank of Commerce and IDBI Bank on Thursday announced a cut in the range of 0.05 to 0.15 percentage point in MCLR for various tenors.

Also read: More Public Sector Banks Join SBI In Cutting Lending Rates By 10-30 Basis Points 

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