Banks revise MCLR-based lending rates for June

Several lenders, including SBI, Punjab National Bank, ICICI Bank and Canara Bank, today revised their marginal cost of funds-based lending rates (MCLR) for June by up to 0.15 per cent for one-year tenor.
The banks slashed the MCLR in the range of 0.05-0.15 per cent.
SBI and Punjab National Bank kept the MCLR for one-year tenor unchanged at 9.15 per cent and 9.40 per cent, respectively.
Among others, Canara Bank cut it by 0.10 per cent to 9.35 per cent and State Bank of Bikaner and Jaipur by 0.15 per cent to 9.55 per cent.
The new lending rates have come into effect from today, the banks said.

MCLR is the new benchmark lending rate and replaces the base rate for new borrowers. It is calculated on the marginal cost of borrowing and return on net worth for banks.

It has been introduced by the Reserve Bank to ensure fair interest rates to borrowers as well as banks.
MCLR is expected to address RBI's primary objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates.
The MCLR rates are revised every month.