State Bank of India (SBI) on Tuesday reduced its marginal cost of funds-based lending rate (MCLR) for the first time in 10 months by 5 basis points (bps) across tenures.
State Bank of India (SBI) on Tuesday reduced its marginal cost of funds-based lending rate (MCLR) for the first time in 10 months by 5 basis points (bps) across tenures. The one-year MCLR at the bank now stands at 7.95%. The overnight rate was reduced to 7.7%, the one-month rate to 7.8%, the three-month rate to 7.85%, the six-month rate to 7.9%, the two-year rate to 8.05% and the three-year rate to 8.1%. The revised rates will come into effect on Wednesday. SBI’s one-year MCLR is typically the lowest in the system. The comparable rates at large private-sector peers HDFC Bank and ICICI Bank now stand at 8.15% and 8.2%, respectively. Punjab National Bank has a one-year MCLR of 8.15% and Bank of Baroda of 8.3%.
Under the MCLR regime, banks review their lending rates every month based on their incremental cost of funds and a few other factors, as mandated by the RBI. On July 31, SBI had reduced its savings rate for accounts with balances of up to Rs 1 crore by 50 bps to 3.5%. Allahabad Bank cuts MCLR by 15 bps Allahabad Bank said it has cut its MCLR across all tenures by 15 basis points with effect from November 1. The MCLR for one year will now be 8.30% from 8.45%. “As a result, interest rates on home, car and other retail loans are set to become one of the finest in the market,” the bank said. The loans with two-year tenure will have a reduced MCLR at 8.5% from 8.65%.
Chola net grows 33% in the second quarter
Cholamandalam Investment and Finance Company (Chola), the financial services arm of the Rs 30,000-crore Murugappa Group, has reported a net profit of Rs 227.25 crore for Q2FY18 against Rs 170.94 crore a year ago, registering a growth of 32.9%. Total income grew by 4.9% to Rs 1, 295.97 crore from Rs 1,162. 64 crore. The aggregate disbursements stood at Rs 5,492 crore against Rs 4,444 crore in Q2FY17, a growth of 24%. The growth compared to Q1 was higher by 13%. The vehicle finance business disbursed Rs 4,295 crore against Rs 3,247 crore — a growth of 32%. A strong growth in heavy- and mini-light commercial vehicle volumes, and used vehicles helped the numbers. Home equity disbursements clocked a growth of 12% over Q1FY 18, reflecting the growth post-demonetisation slow-down. Assets under management grew by 13% to Rs 37,450 crore, compared to Rs 33,180 crore a year ago.