Canara Bank cuts in repo-linked lending rate by 40 bps

By: |
Updated: Jun 06, 2020 8:36 PM

The revised lending rates will be effective from June 7, Canara Bank said in a statement. All new retail loans (housing, education, vehicle), credit to MSMEs are linked to RLLR.

Canara Bank, Canara Bank  repo rates, MCLR, MSME, Reserve Bank of India, latest news on canara bankMany banks have passed on the benefit of reduction in 40 bps in repo rate announced by the Reserve Bank of India in May through cuts in their RLLR.

State-owned Canara Bank on Saturday announced reduction in its repo-linked lending rate (RLLR) by 40 basis points (bps) to 6.90 per cent. Meanwhile, the Bengaluru-based bank also slashed its marginal cost of fund-based lending rate (MCLR) by 20 basis points across various tenors.

The revised lending rates will be effective from June 7, Canara Bank said in a statement. All new retail loans (housing, education, vehicle), credit to MSMEs are linked to RLLR.

Many banks have passed on the benefit of reduction in 40 bps in repo rate announced by the Reserve Bank of India in May through cuts in their RLLR. Recently, some lenders, including Punjab National Bank, Bank of India and UCO Bank, slashed their lending rates linked to repo rate by 40 bps.

With the reduction, it said the one-year MCLR has been revised down to 7.65 per cent from existing 7.58 per cent. For six months, the rate has been reduced to 7.60 per cent.

Overnight and one-month MCLRs have been reduced by 20 basis points to 7.30 per cent each. Six-month MCLR has been revised to 7.55 per cent from 7.75 per cent.

The reduction in MCLR will bring down burden on borrowers.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1RBL Bank net profit up 165% due to steady interest income and lower cost of deposits
2Axis Bank reports Rs 1,683-cr net profit in Q2
3Gold loans may rise sharply in coming months as banks, NBFCs make norms stricter for other loans