State-owned Punjab & Sind Bank (PSB) on August 17 said it has lowered its marginal cost of funds based lending rate (MCLR) by up to 0.20 percent for various tenors.
"Our bank has reviewed the marginal cost of fund based lending rate (MCLR) for different tenors and the same will be effective from 16.08.2019," Punjab & Sind Bank (PSB) said in a regulatory filing.
The public sector bank has lowered the benchmark one-year MCLR to 8.50 per cent from 8.70 percent earlier.
Most of the consumer loans such as personal, auto and home are priced on the basis of the one-year MCLR.
PSB has lowered MCLR on overnight, one-month, three-month and six-month duration loans by 0.15 percent to 8.20 percent, 8.30 percent, 8.40 per cent and 8.50 percent, respectively.
It also reduced MCLR on three-year tenor loans by 0.5 percent to 9.20 percent.
The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to reduce the key interest rate (repo) by 0.35 percentage point to a nine-year low of 5.40 percent.
Oriental Bank of Commerce and IDBI Bank on August 15 announced a cut in the range of 0.05 to 0.15 percentage point in MCLR for various tenors.