Public sector Bank of Maharashtra has cut its marginal cost of funds based lending rates (MCLR) by 0.05 per cent for all the tenors up to one year with effect from November 7, 2017. “The bank has reviewed its marginal cost of funds based lending rates (MCLR) with effect from November 7, 2017,” it said in regulatory filing today. For all the tenors: overnight, one month, three months, six months and one year, the bank had cut the MCLR by 0.05 per cent each to 8.10 per cent, 8.15 per cent, 8.20 per cent, 8.55 per cent and 8.65 per cent each. The bank said it has kept the base rate unchanged at 9.60 per cent.
From April 2016, banks migrated to MCLR system for new loans, however, customers who took loans before this period have the choice to either to move to the new system or stay on with the old base rate. Banks review their MCLR on a monthly basis and may chose to keep it unchanged or revise downward/upward depending upon the prevailing market conditions. Stock of the bank closed 2.65 per cent down at Rs 27.55 on BSE today.