PNB, South Indian Bank lower lending rates for December

New Delhi: Punjab National Bank has cut the marginal cost of funds based lending rate (MCLR) by 0.05-0.10 percentage points for December across maturities of various tenors.

The bank has reduced the marginal cost of funds based lending rate with effect from December 1, 2016, it said in a regulatory filing.

For a tenor of five years, the new MCLR is down by 0.05 percent to 9.45 percent.

While that for three-years, one-year, six-month, three- month, one-month and overnight tenor it has been cut by 0.1 percent each in range of 9.30 percent to 8.90 percent.

Private sector lender South Indian Bank said, it has cut the MCLR in range of 0.05 to 0.3 percent for a select maturity period.

For a six month tenor, the lending rate will be 0.05 percent lower at 9.45 percent, while that for one month and overnight period it is cut by 0.3 percent each to 9 and 9.05 percent respectively.

The three-month tenor MCLR will be down 0.25 percent at 9.15 percent for South Indian Bank.

MCLR is the new benchmark lending rate replaced by RBI earlier this year.

Calculated on the marginal cost of borrowing and return on net worth for banks, it has been introduced to ensure fair interest rates to borrowers as well as banks.

The MCLR rates are revised every month.