×
E-PAPER ▾

E-paper

BUSINESS & FINANCE

Bandhan Bank lowers lending rates by 1.48%

| | Mumbai
Bandhan Bank lowers lending rates by 1.48%

Private sector Bandhan Bank today announced a hefty 1.48 per cent reduction in its lending rates to 10.52 per cent, which will bring down its pricing for micro loans, its biggest segment, to 18.52 per cent.

"We will continue to pass on the benefit of lower cost of funds to our borrowers," Managing Director and Chief Executive Chandra Shekhar Ghosh said.

He said 95 per cent of the lender's Rs 18,500-crore credit portfolio is devoted to micro loans and added the deposit portfolio has risen to Rs 19,000 crore with 27 per cent of it being low-cost current and saving accounts (Casa).

The bank's asset-liability committee has reduced the marginal cost of funds-based lending rates (MCLR) by 1.48 per cent to 10.52 per cent, which will take the actual rate of lending for micro borrowers down to 18.52 per cent, a statement said.

All loans under Rs 1 lakh are classified by the Kolkata-based microfinance lender-turned commercial bank as micro and the revised interest rates are effective tomorrow, it said.

The private bank started operations in August 2015.

Following a New Year eve call to banks by Prime Minister Narendra Modi to help the poor by lowering their interest rates, lenders, flush with huge deposits because of demonetisation, have been announcing lending rate cuts. Top lender State Bank of India led the charge by slashing rates by 0.90 per cent yesterday.

Among the private lenders, Kotak Mahindra Bank today announced a 0.45 per cent reduction.

Banks have moved to MCLR as their new benchmark lending rates from April 2016, replacing the base rate system for new borrowers. It is calculated on the marginal cost of funds and return on networth for banks. It was introduced by the Reserve Bank to ensure better transmission of its policy actions.

 
 
 
 
 

TOP STORIES

Sunday Edition

View All

I am with you, Pawar tells victims of social media trolls

15 Oct 2017 | IANS | Mumbai

Coming out in support of young victims of social media trolls, Nationalist Congress Party (NCP) President Sharad Pawar on Saturday exhorted them to speak out against the wrong policies of the Government and oppose growing incidents of intolerance and fascism across India. In an unique initiative, Pawar met around 35 youngsters who have been threatened on social media and/or booked by police for speaking out their minds against the Government and...

Read More

STATE EDITIONS

View All

Women power to rule lower judiciary in Jharkhand

19 Oct 2017 | SUMAN K SHRIVASTAVA | Ranchi

There may be glaring gender disparity in the top courts, including Supreme Court and various high courts in the country, but Jharkhand is all set to get gender balance in appointment of judges in subordinate judiciary at the entry level. Of the 46 candidates recommended by the Jharkhand Public Service Commission (JPSC) a few days back to be appointed as Civil Judge (Junior division), earlier known as Munsif Magistrates, 22 are...

Read More

Page generated in 0.8134 seconds.