Bank rates refinance

Pressure has been mounting on the Reserve Bank of India to cut interest rates in the wake of declining retail inflation and the need to fuel growth momentum. However, the RBI will have to do a tightrope walk as globally interest rates are inching upwards.  The Reserve Bank is unlikely to yield to the India Inc’s pressure for a benign monetary policy stance by keeping policy rates unchanged in its first monetary policy review of 2018-19 to be announced on Thursday against the backdrop of hardening global crude oil prices.  This would also be the first monetary policy announcement after the Budget, which has slightly deviated from the fiscal consolidation roadmap.  The six-member Monetary Policy Committee, headed by RBI Governor Urjit Patel, is to meet on April 4 and 5.  Pressure has been mounting on the Reserve Bank of India to cut interest rates in the wake of declining retail inflation and the need to fuel growth momentum. However, the RBI will have to … [Read more...] about RBI unlikely to grant India Inc’s wish for lower rates

NEW DELHI: The RBI has urged the government to move forward on reducing interest rates on small savings schemes such as public provident fund (PPF) and post office deposits, to help banks pare rates on deposits and loans and lead to a better transmission of the central bank’s rate cuts. The central bank believes that a reduction in rates on the small savings schemes, which were left unchanged by the government when they were last reviewed at the end of September, will enable banks to cut deposit rates that have been sticky as banks do not want to lose out on deposits. Banks have argued that in absence of a sharp reduction in small savings rates, depositors will move funds from fixed deposits to these schemes, which offer higher returns, any many of them, such as public provident fund, come with tax benefits, making the real returns much higher. Since February, the RBI has reduced policy rates by 135 basis points (100 basis points equal a percentage point) to lower the cost … [Read more...] about RBI urges government to cut rates on small savings schemes

Just a week after the Reserve Bank of India (RBI) maintained status quo on key rates in its bi-monthly monetary policy review, a slew of banks have announced reduction in loan rates. Tuesday evening, Union Bank of India announced that it has cut marginal cost of funds-based lending rates (MCLR) by 5-10 basis points (bps) across all tenors. After the cut, Union Bank of India's one year MCLR now stands at 8.2 percent, down from 8.25 percent. According to a press release issued by the bank, the new rates will be effective from 11 December, 2019. Union Bank of India's MCLR with effect from 11 December, 2019 Tenor MCLR (%) Overnight MCLR 7.75 1-month MCLR 7.80 3-month MCLR 7.95 6-month MCLR 8.05 1-year MCLR 8.20 Source: Company website Since the start of the week, many banks have announced MCLR cuts. Monday saw the country's largest public sector lender, State Bank of India cut its one-year MCLR by 10 basis points, and the largest private sector bank, HDFC Bank reduce … [Read more...] about Union Bank of India cuts MCLR by up to 10 bps across tenors

MUMBAI: Following its peers like SBI, HDFC Bank and Bank of India, state-run Bank of Baroda also has lowered its marginal cost of funds-based lending rates (MCLR) by up to 20 bps across various tenors, effective December 12. The rate reduction comes even as the RBI in a surprise move had left the key policy rates unchanged at the last meeting on December 5. But the city-based lender has reduced its one-year MCLR rates, to which all retail loans are linked to, only marginally by 5 bps to 8.25 percent, the bank said in statement on Tuesday. On Monday, while SBI cut its one-year MCLR by 10 bps to 7.90 percent, HDFC Bank did a 15 bps cut to 8.15 percent, and Bank of India reduced the same by 20 bps to 8.20 percent. With this, BoB's overnight and one-month rates are down 20 bps to 7.65 percent now. It has also reduced by 10 bps in three-months and six months MCLR to 7.80 percent and 8.10 percent, respectively. … [Read more...] about Now, BoB lowers MCLR lending rates by 20 bps

MUMBAI: State-run Bank of India Thursday said it has increased its marginal cost of funds based lending rate (MCLR) by 0.05 per cent for overnight and one month tenure, effective October 10. The new overnight rate stands at 8.05 per cent, while the one month rate has been revised to 8.15 per cent, the bank said in a statement. The lender left the MCLR rates for three, six and 12 months loan tenures unchanged at 8.30 per cent, 8.50 per cent and 8.60 per cent, respectively. Many state-run lenders have recently increased their MCLRs, with country's largest lender State Bank of India raising it by 0.05 per cent for various tenures effective October 1. It's one year MCLR currently stands at 8.50 per cent, against 8.40 per cent previously. Punjab National Bank also increased its benchmark lending rates or MCLR last week for the short-term loans by up to 0.2 per cent. Oriental Bank of Commerce (OBC) raised it's MCLR by 0.10 per cent for various tenures with effect from Thursday. Another … [Read more...] about Bank of India raises MCLR rates by 0.05% on two tenures