Punjab National Bank revises MCLR rates

State-owned Punjab National Bank on Friday revised its lending rate between the range of 9.05% - 9.60%.

It said in a statement, The bank has revised the marginal cost of lending rates (MCLR) which will be in effect from October 1, 2016.”

For overnight tenor the lending rate is set at 9.05%, while for one-month at 9.10%, three-month at 9.20% and six-month at 9.25%.

The bank has kept lending rate at 9.30% for a tenor of one year.

While more than a year, the bank kept rate at 9.45% for three-year tenor and 9.60% for five-year tenor respectively.

MCLR should be revised monthly by considering some new factors like the repo rate and other borrowing rates.

As per the guidelines set by RBI, banks are supposed benchmark rates for different tenure or time periods ranging from overnight (one day) rates to one year and more.