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Last Updated : Feb 13, 2020 03:00 PM IST | Source: PTI

Allahabad Bank cuts MCLR by 5 bps across tenors

The Asset Liability Management Committee of the bank has reviewed the existing MCLR and decided for a downward revision by 5 basis points (bps) across different MCLR tenors, the bank said in a regulatory filing.

PTI
‘The big bank merger’: In September, the Centre announced it would merge public sector banks and reduce their number from 27 to 12 over the next few years. FM Sitharaman unveiled a plan to merge 10 PSBs into four entities, with an aim to revitalise the banking sector. Three banks -- PNB, OBC and United Bank of India -- will combine to form India’s second-largest lender. While Canara Bank and Syndicate Bank will merge to form the fourth largest PSB, Union Bank of India will merge with Andhra Bank and Corporation Bank to create India’s fifth largest PSB. Additionally, Indian Bank would merge with Allahabad Bank, making it the seventh largest PSB.
‘The big bank merger’: In September, the Centre announced it would merge public sector banks and reduce their number from 27 to 12 over the next few years. FM Sitharaman unveiled a plan to merge 10 PSBs into four entities, with an aim to revitalise the banking sector. Three banks -- PNB, OBC and United Bank of India -- will combine to form India’s second-largest lender. While Canara Bank and Syndicate Bank will merge to form the fourth largest PSB, Union Bank of India will merge with Andhra Bank and Corporation Bank to create India’s fifth largest PSB. Additionally, Indian Bank would merge with Allahabad Bank, making it the seventh largest PSB.
 
 
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Allahabad Bank has cut the marginal cost of funds based lending rate (MCLR) by 0.05 percentage points across tenors, effective February 14.

The Asset Liability Management Committee of the bank has reviewed the existing MCLR and decided for a downward revision by 5 basis points (bps) across different MCLR tenors, the bank said in a regulatory filing.

The benchmark one-year tenor MCLR will now be 8.25 percent as compared to the existing 8.30 percent.

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Most of the consumer loans, such as retail, automobile and personal, are based on one-year MCLR.

Likewise, the overnight, three and six-month tenor MCLRs have been cut by 5 bps each in the range of 7.75-8.10 percent. There has been no change in one-month MCLR of 7.85 percent.

The revised rates will be effective from February 14, 2020, Allahabad Bank said.

Several other banks, including State Bank of India, have revised their MCLR following RBI's policy rate announcement on February 6.

Even though the regulator kept the repo rate unchange at 5.15 percent, banks were given other relief in the form of cash reserve ratio (CRR) relaxation for loans to MSMEs.
First Published on Feb 13, 2020 02:57 pm
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