New Delhi: Dena Bank on Monday slashed its benchmark lending rate by 0.75 per cent, in the footsteps of bigger lenders like State Bank of India and Punjab National Bank.
Dena Bank has reduced its marginal cost of funds-based lending rate (MCLR) by 0.75 per cent to 8.55 per cent for one-year tenor, the public sector lender said in a statement.
With the reduction in benchmark rate, home, car and other loans linked to MCLR would become cheaper.
On Sunday, State Bank of India - the country's largest lender - along with PNB and Union Bank of India slashed lending rates by up to 0.9 per cent.
Following the reduction, lending rate of SBI for a one-year loan has came down to 8 per cent from 8.90 per cent.
Banks are flush with deposits following demonetisation.
Banks have switched to MCLR as their new benchmark lending rate from June last year, replacing the base rate system for new borrowers. It is calculated on the marginal cost of borrowing and return on net worth for banks. It was introduced by the Reserve Bank of India to ensure fair interest rates to borrowers as well as banks.
MCLR also seeks to address the regulator's primary objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates. MCLR rates are revised every month.
At 1:54 p.m., shares in Dena Bank were trading 1.22 per cent at Rs 33.15 on the BSE, whose benchmark Sensex index was down 0.11 per cent.
New Delhi: Dena Bank on Monday slashed its benchmark lending rate by 0.75 per cent, in the footsteps of bigger lenders like State Bank of India and Punjab National Bank.
Dena Bank has reduced its marginal cost of funds-based lending rate (MCLR) by 0.75 per cent to 8.55 per cent for one-year tenor, the public sector lender said in a statement.
With the reduction in benchmark rate, home, car and other loans linked to MCLR would become cheaper.
On Sunday, State Bank of India - the country's largest lender - along with PNB and Union Bank of India slashed lending rates by up to 0.9 per cent.
Following the reduction, lending rate of SBI for a one-year loan has came down to 8 per cent from 8.90 per cent.
Banks are flush with deposits following demonetisation.
Banks have switched to MCLR as their new benchmark lending rate from June last year, replacing the base rate system for new borrowers. It is calculated on the marginal cost of borrowing and return on net worth for banks. It was introduced by the Reserve Bank of India to ensure fair interest rates to borrowers as well as banks.
MCLR also seeks to address the regulator's primary objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates. MCLR rates are revised every month.
At 1:54 p.m., shares in Dena Bank were trading 1.22 per cent at Rs 33.15 on the BSE, whose benchmark Sensex index was down 0.11 per cent.
New Delhi: Dena Bank on Monday slashed its benchmark lending rate by 0.75 per cent, in the footsteps of bigger lenders like State Bank of India and Punjab National Bank.
Dena Bank has reduced its marginal cost of funds-based lending rate (MCLR) by 0.75 per cent to 8.55 per cent for one-year tenor, the public sector lender said in a statement.
With the reduction in benchmark rate, home, car and other loans linked to MCLR would become cheaper.
On Sunday, State Bank of India - the country's largest lender - along with PNB and Union Bank of India slashed lending rates by up to 0.9 per cent.
Following the reduction, lending rate of SBI for a one-year loan has came down to 8 per cent from 8.90 per cent.
Banks are flush with deposits following demonetisation.
Banks have switched to MCLR as their new benchmark lending rate from June last year, replacing the base rate system for new borrowers. It is calculated on the marginal cost of borrowing and return on net worth for banks. It was introduced by the Reserve Bank of India to ensure fair interest rates to borrowers as well as banks.
MCLR also seeks to address the regulator's primary objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates. MCLR rates are revised every month.
At 1:54 p.m., shares in Dena Bank were trading 1.22 per cent at Rs 33.15 on the BSE, whose benchmark Sensex index was down 0.11 per cent.
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