Punjab National Bank reduces MCLR by 10bps

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The public sector bank, Punjab National Bank (PNB), announced on Wednesday that it has decreased the Marginal Cost of funds based Lending Rate (MCLR) by 10 bps (basis points) for loans of all tenors. One basis point is equal to one-hundredth of 1 per cent or 0.01 per cent. The revised rate comes into effect on March 1. 

Punjab National Bank
PNB announced the change in MCLR through a regulatory filing on Wednesday.

The rate for over-night tenor was previously 8.15 per cent but is now 8.05 per cent. The rates for one-month, three-month, and six-month tenors have also dropped by 0.10 per cent to 8.10 per cent, 8.15 per cent, and 8.35 per cent respectively. The rate for the one-year tenor has decreased from 8.55 per cent to 8.45 per cent and the rate for the three-year tenor has dropped from 8.75 per cent to 8.65 per cent. 

Tenor 

Previous rate (in per cent) 

Revised rate (in per cent) 

3 years 

8.75 

8.65 

1 year 

8.55 

8.45 

6 months 

8.45 

8.35 

3 months 

8.25 

8.15 

1 month 

8.20 

8.10 

Overnight 

8.15 

8.05 

 

PNB has said that the base rate remains unchanged at 9.25 per cent. 

The RBI, in the previous bi-monthly review for the year 2018-19, decreased the repo rate by 0.25 per cent to 6.25 per cent. This encouraged banks to reduce lending rates. 

Source: Money Control 

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