01 Jun , 2021 By : Kanchan Joshi
New Delhi: Punjab National Bank (PNB) has reduced its benchmark one-year marginal cost of funds-based lending rate (MCLR) by 0.05 per cent to 7.30 per cent, the bank said in a regulatory filing
The new MCLR rates will come into effect from today, 1 June 2021.
The overnight, one-month and three-year MCLRs have been kept unchanged. The six-month and three-month tenor MCLRs were cut by 0.10 per cent each to 7 per cent and 6.80 per cent, respectively.
PNB revises MCLR w.e.f. 01.06.2021
Overnight 6.65%
One month 6.70%
Three months 6.80%
Six months 7.00%
One year 7.30%
Three years 7.60%
The reduction in Canara Bank's lending rate will make EMIs on home and other loans tied to its marginal cost of funds based lending rate cheaper.
The MCLR mechanism was introduced into banking system in April 2016 as an alternative to the base rate, below which banks cannot lend, for new borrowers.
MCLR is calculated on the marginal cost of borrowing and return on net worth for banks,
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