homefinance NewsBank of Maharashtra to cut MCLR, retail loans to be cheaper

Bank of Maharashtra to cut MCLR, retail loans to be cheaper

On Thursday, muted growth and subdued inflation prompted the RBI to lower its key lending rate for commercial banks by 25 bps to 6 percent.

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By IANS  Apr 6, 2019 2:23:03 PM IST (Published)

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Bank of Maharashtra to cut MCLR, retail loans to be cheaper

A day after the Reserve Bank of India (RBI) lowered its key lending rate, Bank of Maharashtra on Friday said it will reduce the benchmark marginal cost of funds based lending rate (MCLR) by 5 basis points (bps) across various tenures from April 7.


"Bank of Maharashtra has reviewed and reduced its MCLR w.e.f. (with effect from) 7th April 2019," the bank said in a statement.
For all the tenures -- overnight, one-month, three-month, six-month and one-year -- the bank will reduce the MCLR by 0.05 percent each to 8.20 percent, 8.25 percent, 8.45 percent, 8.50 percent and 8.70 percent, respectively.
On Thursday, muted growth and subdued inflation prompted the RBI to lower its key lending rate for commercial banks by 25 bps to 6 percent.
"On the basis of an assessment of the current and evolving macroeconomic situation, the MPC (Monetary Policy Committee) decided to reduce the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6 per cent from 6.25 per cent with immediate effect," the RBI said.
"Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the bank rate to 6.25 per cent."

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