Union Bank Of India reduces MCLR by 5 BPS across all tenors

Union Bank of India has announced reduction in  Marginal Cost of Funds- based Lending rate (MCLR) by 5 basis points across all tenors. One year MCLR now stands at 7.20%, down from 7.25%. Revised MCLR is effective from 11th Sep 2020. This is the fifteenth consecutive rate cut announced by the Union Bank of India since July 2019.

Revised MCLR, effective from 11th Sep, 2020 is as under:

Earlier, state-run lender Union Bank on on Aug 22 had reported a net profit of Rs 333 crore for the first quarter of 2020-21.

The lender had reported a net loss of Rs 7,157 crore during the corresponding period of the previous fiscal.

"Amalgamation of the Andhra Bank and the Corporation Bank came into effect on April 1, 2020; accordingly the combined financials as on March 31, 2020 and June 30, 2019 has been arrived at by aggregating audited or reviewed numbers of three banks," the lender said in a statement.

The bank's net interest income for April-June quarter of FY21 grew by 17.1 per cent to Rs 6,403 crore as against Rs 5,468 crore in the same period last year.

Gross NPA ratio improved to 14.95 per cent as on June 30, 2020 compared to 15.59 per cent as on June 30, 2019.

"Net NPA ratio improved to 4.97 per cent as on June 30, 2020 compared to 6.47 per cent as on June 30, 2019," the statement said.

"Provision Coverage Ratio (PCR) improved to 79.87 per cent as on June 30, 2020 compared to 73.38 per cent as on June 30, 2019."