PNB cuts MCLR rates by 10 bps from March 1

New Delhi: State-owned Punjab National Bank (PNB) on Wednesday said it will reduce the MCLR by 0.10 percentage point for various tenor loans from March 1.

There is a reduction in the marginal cost of funds based lending rate (MCLR) with effect from March 1, 2019, PNB said in a regulatory filing.

The one-year tenor loans, against which most of the consumer loans are benchmarked, has been cut to 8.45 percent from 8.55 percent.

The three-year MCLR has been cut to 8.65 percent.

The rates for overnight, one/three/six month MCLRs are also down by 10 basis points each at 8.05 percent, 8.10 percent and 8.15 percent respectively.

Base rate at 9.25 percent will remain unchanged, bank said.

Country's largest lender SBI on February 8 had announced to cut home loan rates by 0.05 percentage point for loans up to Rs 30 lakh.

The Reserve Bank in its last bi-monthly policy review for 2018-19 had cut the key repo rate by 25 basis points to 6.25 percent, paving the way for banks to make consumer loans cheaper.