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PNB, South Indian Bank lower lending rates for Dec

Press Trust of India  |  New Delhi 

National has cut the marginal cost of funds based lending rate (MCLR) by 0.05-0.10 percentage points for December across maturities of various tenors.

The has reduced the marginal cost of funds based lending rate with effect from December 1, 2016, it said in a regulatory filing.

For a tenor of five years, the new MCLR is down by 0.05 per cent to 9.45 per cent.

While that for three-years, one-year, six-month, three- month, one-month and overnight tenor it has been cut by 0.1 per cent each in range of 9.30 per cent to 8.90 per cent.

Private sector lender said, it has cut the MCLR in range of 0.05 to 0.3 per cent for a select maturity period.

For a six month tenor, the lending rate will be 0.05 per cent lower at 9.45 per cent, while that for one month and overnight period it is cut by 0.3 per cent each to 9 and 9.05 per cent respectively.

The three-month tenor MCLR will be down 0.25 per cent at 9.15 per cent for

MCLR is the new benchmark lending rate replaced by RBI earlier this year.

Calculated on the marginal cost of borrowing and return on net worth for banks, it has been introduced to ensure fair to borrowers as well as banks.

The MCLR rates are revised every month.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, November 30 2016. 20:13 IST