South India Bank revises MCLR rate on various tenor; stocks trade flat

MCLR is a tenor-linked internal benchmark, which works as a minimum interest rate for lenders on borrowings.

May 20, 2020 10:05 IST India Infoline News Service

South Indian Bank
The Kerala-based South Indian Bank has revised its Marginal Cost of Funds Based Lending Rates (MCLR) on loan instruments for various tenure with effect from Wednesday onward. As per the RBI guidelines, every lender must revise their benchmark MCLR rate every month to provide the benefits of the policy repo rate.

Now, the bank's one-year MCLR rate stands at 8.65%. As for six months of tenor, the rate comes at 8.30%.

For 3-months tenor, the MCLR rate has been set at 8.10%. However, for a shorter period such as overnight and one-month, the MCLR rate stands at 7.95% and 8% respectively.

MCLR is a tenor-linked internal benchmark, which works as a minimum interest rate for lenders on borrowings. With a change in MCLR rate, one can expect revision in their home, personal, auto and corporate loans which varies from bank to bank.

On Sensex, the bank's stock price is trading at an intraday low of Rs5.03 per piece down by 0.20% at around 10.09 am.

The stock opened at intraday high of Rs5.08 per piece, however, gave away early gains.

The stock had ended at Rs5.04 per piece in the previous closing.

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