Bank of Maharashtra (BoM) has cut its marginal cost of funds-based lending rate (MCLR) by 20-35 basis points (bps) across tenors with effect from July 11, 2022, even as other banks have upped their MCLR in the wake of hike in policy repo rate and deposit rates.
The Pune-headquartered public sector bank has effected the maximum cut of 35 bps in the three months MCLR to 7.20 per cent from 7.55 per cent earlier.
The six months and one year MCLR have been pared by 20 bps each to 7.40 per cent (7.60 per cent earlier) and 7.50 per cent (7.70 per cent), respectively.
The overnight and one-year MCLR have been reduced by 25 bps each to 6.90 per cent (7.15 per cent) and 7 per cent (7.25 per cent), respectively.
AS Rajeev, MD & CEO, BoM, attributed the MCLR cut to course correction linked to movement in yield of the 10-year benchmark and the bank decided to pass on the benefit to its customers.
As at March-end 2022, the share of MCLR-linked loans (mostly to corporates) in total outstanding loans stood at 49.2 per cent.