New Delhi: State-owned Punjab and Sind Bank said in a regulatory filing on Monday that it has reviewed the Marginal Cost of Fund Based Lending Rate (MCLR) for different tenors and the same will be effective from May 16. The overnight MCLR of the bank stood at 7.9 percent, the filing noted.

The bank's one-month MCLR stood at 8 percent, its three-month MCLR stood at 8.3 percent, six-month MCLR is 8.55 percent, and one-year MCLR is 8.65 percent.

Banks review MCLR (Marginal Cost of Funds based Lending Rate) to ensure that their lending rates are in line with the prevailing market conditions and their own cost of funds. MCLR is the minimum interest rate that a bank can charge on its loans, and it is determined based on the bank's cost of funds, which includes factors such as the repo rate set by the Reserve Bank of India, deposit rates, and other operational costs.

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