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

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

“Our bank has reviewed the marginal costs of fund based lending rate (MCLR) for various tenors and a similar will be effective from 16.08.2019,” Punjab and Sind Bank (PSB) said in a regulatory filing.

The public sector bank has brought down the benchmark one-year MCLR to 8.50 percent from 8.70 percent prior.

The most of the consumer loans, for example, personal, auto and home are priced based on the one-year MCLR.

PSB has lowered MCLR on short-term, one-month, three-month and half year duration loans by 0.15 percent to 8.20 percent, 8.30 percent, 8.40 percent and 8.50 percent, respectively.

It also reduced MCLR on three-year tenor credits by 0.5 percent to 9.20 percent.

The rate cut follows a MCLR cut by the country’s biggest lender SBI present the RBI’s choice on lessen the key interest rate (repo) by 0.35 percentage point a nine-year low of 5.40 percent.