Good news! Canara Bank slashes interest rates on loans

In a good news, Canara Bank has reduced its Marginal Cost of Funds Based Lending Rate (MCLR) on loans / advances across all tenors with effect from Tuesday for the amalgamated entity. The public sector lender has reduced interest rate by 35 basis points under one year tenor, 30 basis points under six months tenor, 20 basis points under three months tenor and 15 basis points under overnight and one month tenors.

Repo Linked Lending Rate (RLLR) has been reduced by 75 basis points from 8.05 per cent to 7.30 per cent effective from Tuesday, it said in a statement.

The amalgamation of Syndicate Bank into Canara Bank came into effect from April 1.

On March 4, the Union Cabinet had approved the mega consolidation in public sector banks (PSBs) with effect from April 1, under which 10 state-run banks would be transformed into 4 big banks. It also approved the scheme of merger submitted by the banks concerned which will be part of the process, which, the government said, would lead to big-ticket lending.  Finance Minister Nirmala Sitharaman said, in a briefing afterwards, that the amalgamations will enable creation of digitally driven consolidated banks with global heft and business synergies.

She said the amalgamations would enhance customer convenience, better branch service, higher credit flow, and lesser time in loan sanctions. She said the banks have been provisioned for the amalgamation related work and there is no worry on this and there is no forbearance from any regulator on this.

In one of the biggest consolidation exercise in the banking industry, the government last year announced amalgamation of the Oriental Bank of Commerce and the United Bank of India with the Punjab National Bank, of the Syndicate Bank into the Canara Bank, of the Andhra Bank and the Corporation Bank into the Union Bank of India, and of the Allahabad Bank into the Indian Bank.