Bank of Maharashtra announces cut in repo-linked lending rate by 40 bps to 7.05 pc

Mumbai, Jun 5 () State-owned Bank of Maharashtra (BoM) on Friday announced reduction in its repo-linked lending rate (RLLR) by 40 basis points (bps) to 7.05 per cent.

The revision in RLLR rates will be effective from June 8, the bank said in a release.

"Now, all retail loans (housing, education, vehicle), loans to MSMEs, which are linked to RLLR, will be available at cheaper rates," the lender said.

Most of the banks have passed on the benefit of reduction in 40 bps in repo rate announced by the Reserve Bank of India in May through cuts in their RLLR.

Recently, some lenders, including Punjab National Bank, Bank of India and UCO Bank, slashed their lending rates linked to repo rate by 40 bps.

Pune-headquartered BoM also said it will cut its marginal cost of funds-based lending rates (MCLR) by 20 bps across all tenors from June 8.

This would be the third consecutive cut by the state-owned bank.

The one-year MCLR has been revised to 7.70 per cent from 7.90 per cent earlier. For six months, the rate has been revised to 7.50 per cent.

The reduction in MCLR is aimed at supporting economic growth and industrial development and ensure rate transmission, the lender said. HV HRS