PNB to cut MCLR rates by 10-15 bps from May 1
Public sector lender Punjab National Bank has decided to cut its marginal cost of fundsbased lending rate (MCLR) by 10-15 basis points (bps) across different maturities from May 1. It will also reduce interest rate on retail term deposits by 10-25 bps from May 3. The revised MCLR, an internal benchmark for pricing loans, for one-year credit from May 1 will be 8.35 per cent, against 8.45 per cent prevailing in April.
Public sector lender Punjab National Bank has decided to cut its marginal cost of fundsbased lending rate (MCLR) by 10-15 basis points (bps) across different maturities from May 1.
It will also reduce the interest rate on retail-term deposits by 10-25 bps from May 3.
The revised MCLR, internal benchmark for pricing loans, for one-year credit from May 1 will be 8.35 per cent, against 8.45 per cent prevailing in April 2017.
The rate for overnight credit will be cheaper by 15 bps at 8.05 per cent in May, down from 8.20 per cent in April. For five-year loans, new rate will be 8.65 per cent, against 8.75 per cent in April, PNB said in a statement on Saturday. Fresh loans and renewal of existing credit will be done at revised rates.
The downward revision in rates comes after a gap of four months. Delhi-based lender had cut MCLR by 70 bps across all maturities in January 2017, taking benefit of a sharp drop in cost of funds after demonetisation.
The MCLR regime came into effect from April 1, 2016, replacing old-base rate regime to improve transmission of policy rates as well as transparency in fixing rates.
PNB has reduced MCLR by 105 bps since April 2016 on one-year bucket and by 110 bps for overnight credit.