PNB cuts MCLR rates by 0.05% in various tenors from Aug 1

Punjab National Bank (PNB) has cut marginal cost of lending rate (MCLR) by 0.05 percentage point across various tenures.

The new MCLR rates will come to effect from August 1, PNB said in a regulatory filing on Saturday.

For all tenors, including overnight, the bank has trimmed the MCLR rate by 0.05 per cent each ranging from 9.10 per cent to 9.65 per cent.

Recently introduced MCLR is the new benchmark lending rate which has replaced the base rate for new borrowers.

It is calculated on the marginal cost of borrowing and return on net worth for banks. The Reserve Bank of India has inducted the new rate calculation method to ensure fair interest rates to borrowers as well as banks.

It is expected to address the RBI's primary objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates.

These rates are revised every month.