State-run banks rework repo-linked lending and deposit rates
11 October 2019
Several public sector lenders, including Bank of India, Oriental Bank of Commerce and Bank of Maharashtra, have reduced their benchmark lending rates by up to 25 basis points (bps), following a cut in the key policy repo rate by the RBI last month. With this retail loans like home, auto and other loans have become cheaper.
In line with the decision of RBI to reduce repo rate by 25 bps, the bank reduced the interest rate applicable for retail segment and micro and small enterprises by similar basis points and the revised repo linked lending rate will be 8 per cent effective 1 November, Indian Overseas Bank said in a statement.
Bank of India reduced its overnight marginal cost of funds-based lending rate (MCLR) by 15 bps and one year MCLR by 5 bps or 0.05 percentage point.
These revised MCLR would be applicable to the customers of the bank with effect from 10 October 2019. This reduction transmits the change made in RBI policy repo rate in October 2019, BOI said.
Bank of Maharashtra slashed its MCLR by 0.10 percentage point across tenors. The benchmark one-year MCLR will now be priced at 8.40 per cent with effect from 8 October 2019, the bank said in a regulatory filing.
The other tenors from overnight to six-months have been slashed by equal measure in the range of 8.05-8.30 per cent. The lender has also cut down the repo linked lending rate (RLLR) by 0.25 percentage point to 8.20 per cent from 8.45 per cent earlier with effect from 8 October.
Base rate has been kept unchanged at 9.50 per cent per annum, Bank of Maharashtra said.
Central Bank of India reduced repo based lending rate (RBLR) by 25 bps (0.25 percentage point) with effect from 10 October 2019, in view of festival season and in order to extend benefit to customers across retail/micro/small enterprises.
Accordingly, interest rate on housing loans (low risk category) stands reduced from 8.25 per cent to 8 per cent and for MSE loans it stands reduced to 8.95-9.50 per cent from 9.20-9.75 per cent, Central Bank of India said.
Oriental Bank has cut the MCLR on one-year tenor loan to 8.35 per cent from 8.40 per cent earlier. The new rate is effective 10 October, it said in a release.
Simultaneously, major lenders, including State Bank of India, Axis Bank and Punjab National Bank have also revised FD rates in October, following a 25 bps reduction in repo rate by the RBI last week.
For FDs maturing in 7 days to 45 days and 46 days to 179 days, SBI gives 4.50 per cent and 5.50 per cent interest, respectively. For FDs maturing in 180 days to 210 days and 211 days to less than 1 year, the bank offers an interest rate of 5.80 per cent. SBI has slashed the interest rate on deposits maturing in 1 year to less than 2 years by 10 basis points. Now these deposits will yield an interest rate of 6.40 per cent. For FDs maturing in 2 years to 10 years, SBI will give 6.25 per cent interest.
HDFC Bank offers 3.50 per cent interest rate on deposits maturing between 7 days and 14 days. For 15 days to 29 days maturity FDs, the bank is offering 4.25 per cent, for 30 days to 45 days 5.15 per cent, for 46 days to 6 months 5.65 per cent, for six months one day to nine months 6.25 per cent and nine months one day to less than 1 year 6.35 per cent. For FDs with maturity period 1 year and 2 years, the bank gives 6.60 per cent interest. For deposits maturing in 2 years 1 day to 3 years, HDFC Bank gives the highest interest rate at 7 per cent. For FDs maturing in 3 years 1 day to 10 years, the bank offers an interest rate of 6.90 per cent
Effective 4 October, Axis Bank is offering 3.50 per cent interest on FDs between 7 days to 14 days. For FDs between 15 days and 29 days and 30 days to 45 days, Axis Bank is offering 4.00 per cent and 5.20 per cent interest, respectively. For 46 days to less than 3 months, the interest rate is 5.65 per cent. For FDs with 3 months to less than 6 months, Axis Bank will give 5.75 per cent interest now. On FDs maturing between 6 months and less than 9 months, the bank is giving an interest rate of 6.25 per cent. For FDs maturing in 9 months to less than 11 months 25 days, Axis Bank gives 6.35 per cent interest. For deposits maturing in 11 months 25 days to less than 1 year, Axis Bank pays an interest rate of 6.70 per cent. Axis Bank pays interest rate of 6.60 per cent on FDs between 1 year to less than 1 year 25 days. Term deposits maturing in 1 year 25 days to less than 18 months will fetch an interest rate of 6.70 per cent. For FDs maturing in 18 months to less than 2 years, Axis Bank is giving 6.80 per cent interest. Axis Bank will give 7.00 per cent interest on FDs maturing in 2 years and 3 years. For deposits with maturity period 3 and 10 years, the bank will now give 6.75 per cent interest.
Effective 1 October, PNB is offering an interest rate ranging between 4.5 per cent and 6.5 per cent on fixed deposits maturing between 7 days and 10 years. PNB is offering an interest rate of 4.5 per cent on 7-45 day fixed deposits and 5.5 per cent on 46 to 179 day FDs. On 180 days to 270 days FDs, PNB is paying 6 per cent, respectively. PNB gives 6.00 per cent interest on deposits maturing in 271 days to less than 1 year. Term deposits maturing in 333 days and 1 year will fetch an interest rate of 6.1 per cent and 6.5 percent, respectively. PNB is offering 6.5 per cent on 444-day and 555-day maturity FDs. On 1 year to 2 years, the bank is offering 6.4 per cent and on 2 years to 3 years, PNB is offering 6.25 per cent. On FDs between 3 years and up to 5 years, PNB is offering 6.25 per cent interest and above 5 years and up to 10 years, the bank is offering 6.5 per cent interest.