Punjab National Bank has revised down marginal cost based lending rates by 0.10-0.15 per cent for various maturities effective today. The maximum of 0.15 per cent has been effected for the overnight marginal cost of funds based lending rate (MCLR) tenure to 8.05 per cent. For one, three and six months as well as one, three and five years, the new MCLR has been revised down by 0.10% each.
The new MCLR for one-year tenure is 8.35% and for three years, 8.50%. For the six-month tenure, the new rate is 8.30%, the bank said in a release.
Earlier, State Bank of India, India’s largest lender, had cut its term deposit rates by up to 50 basis points for various maturities. The rates were revised for medium and long term deposits and for an amount below Rs one crore.
According to SBI’s new structure, for two to less than three years deposits, the offered rate will be 6.25% as compared to 6.75% earlier. For a similar maturity, the deposit rates for senior citizen have been cut to 6.75% from 7.25%.
For deposits maturing between three years and 10 years, the rates have been lowered by 25 basis points to 6.50%. SBI will offer the new rates for fresh deposits and renewals applicable from April 29, 2017.
The short-term deposits, that is, for deposits maturing between seven days to less than two years, the rates have been left unchanged. SBI is offering highest rates of 6.90% for one year to 455 days term deposits. The bank has not changed its MCLR. Its one-year MCLR is still eight per cent.
After the monetary policy review in February, RBI Governor Urjit Patel had said there was a scope for more rate cuts by banks, pointing out that the weighted average lending rate has come down only by 0.85-90% as against a 1.75% cut in policy rates since January 2015.
“The Monetary Policy Committee took note of the reduction in bank lending rates but saw further scope in a complete reduction, including for small savings and administered rates. There is still scope for lending rates to come down further because our policy rates came down by 175 basis points and weighted average lending rates have come down only by 85- 90 basis points. I think there is scope for more transmission,” Governor Urjit Patel had said. The lack of transmission has been one of the dominant worries expressed by RBI, during the past two years, when it was in an accommodative stance.
Meanwhile, with effect from today, Lakshmi Vilas Bank has also revised down its one-year MCLR by 0.05% to 9.70% per annum. Banks review the MCLR rates on a monthly basis.