Following the Central Bank of India’s decision to reduce the repo rate by 25 basis points to 6% from 6.25% to boost growth, State Bank of India reduced its lending rates and now Bank of Maharashtra has followed suit. Bank of Maharashtra, which is headquartered in Pune, reduced its marginal cost of funds-based lending rates (MCLR) by 5 basis points from 8.75% to 8.70% for the one-year tenure.
In addition, Bank of Maharashtra reduced its lending rates for the one-month tenure to 8.25%, three-month tenure to 8.45% and the six-month tenure to 8.50%. However, the base rate stands at 9.50%.
Following the drop of MCLR rates, the Reserve Bank of India has projected the GDP to stand at 7.2% from the earlier 7.4% and reduced its inflation projection as well to 2.9% from the projected 3.8% for FY 2020.
Source: Business Standard