Bank of Maharashtra (BoM) has increased its one-year marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps) to 8.70 per cent from 8.60 per cent, even as it has upped retail fixed deposit (FD) rates by up to 125 bps across select tenors.
The revised MCLR and FD rates are effective from October 11 and October 12, respectively. Usually, corporate loans are priced with reference to MCLR, which comprises four components — marginal cost of funds; negative carry on account of cash reserve ratio; operating costs; and tenor premium.
The Pune-headquartered public sector bank has left MCLR in other tenors unchanged. BoM has effected the maximum increase of 125 bps on FDs of 46-90 days tenor, with the new interest rate being 4.75 per cent against 3.50 per cent earlier. Among all tenors, the Bank is offering the highest interest of 6.50 per cent (6.35 per cent earlier) on one-year deposit. Special deposit scheme of 200 days and 400 days tenor continue to earn 7 per cent and 6.25 per cent, respectively.