Mumbai/Kolkata, Feb 27 (IANS) Punjab National Bank (PNB) and Allahabad Bank will reduce benchmark marginal cost of funds based lending rate (MCLR) by 10 basis points (bps) across various tenures from March 1.
The reduction will make home, car and other retail loans cheaper.
According to the PNB, the reduction is applicable to all the tenures — overnight, one month, three-months, six-month, one-year and three years.
Similarly, state-run Allahabad Bank said it will cut MCLR across all tenures up to three years with effect from March 1.
“The Asset Liability Management Committee of the bank has reviewed the MCLRs and decided to go for a downward revision by 10 bps for all tenures,” Allahabad Bank said in a regulatory filing.
For all the tenures — overnight, one-month, three-month, six-month, one-year, two-year and three years — the bank has cut the MCLR by 0.10 per cent each to 8.15 per cent, 8.25 per cent, 8.45 per cent, 8.50 per cent, 8.65 per cent, 8.85 per cent and 8.95 per cent, respectively, according to the regulatory filing.
Last week, the Reserve Bank of India (RBI) had asked lenders to transmit the repo rate cut benefit to the real economy after a 25 bps rate cut by the apex bank in early February.
A basis point is one hundredth of a per cent.