Punjab & Sind Bank cuts MCLR by up to 20 basis points

State-owned Punjab & Sind Bank (PSB) on Saturday said it has lowered its marginal cost of funds based lending rate (MCLR) by up to 0.20 per cent for various tenors.

"Our bank has reviewed the marginal cost of fund-based lending rate (MCLR) for different tenors and the same will be effective from 16.08.2019," Punjab & Sind Bank (PSB) said in a regulatory filing.

The public sector bank has lowered the benchmark one-year MCLR to 8.50 per cent from 8.70 per cent earlier.

Most of the consumer loans such as personal, auto and home are priced on the basis of the one-year MCLR.

PSB has lowered MCLR on overnight, one-month, three-month and six-month duration loans by 0.15 per cent to 8.20 per cent, 8.30 per cent, 8.40 per cent and 8.50 per cent, respectively.

It also reduced MCLR on three-year tenor loans by 0.5 per cent to 9.20 per cent.

The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to reduce the key interest rate (repo) by 0.35 percentage point to a nine-year low of 5.40 per cent.

Oriental Bank of Commerce and IDBI Bank on Thursday announced a cut in the range of 0.05 to 0.15 percentage point in MCLR for various tenors.