Bank of Maharashtra cuts MCLR; Stocks rise

Bank of Maharashtra, the major public sector bank announced that it has reduced its Marginal Cost of Funds-based Lending Rate (MCLR) across various tenors. It has reduced one-year MCLR by up to 45 basis points, i.e. from 8.40 per cent to 8.25 per cent.

Effective from January 7, 2020 (Tuesday), the new MCLR would be 7.60 per cent for overnight, 7.70 per cent for one-month, 7.75 per cent for three months and 7.90 per cent for six months.

The bank has also revised its base rate by 10 basis points to 9.40 per cent. This rate cut comes despite the Reserve Bank of India (RBI) keeping its repo rate unchanged at 5.15 per cent post December Monetary Policy review.

Bank of Maharashtra is the third one in a row to change its rate after the recent moves by HDFC and SBI.   

Post this development, the stock price of Bank of Maharashtra rose when the market opened on Tuesday, i.e. at Rs 12.80, against its previous close of Rs 12.46, however, the prices fluctuated and went down at 10 am but regained at 10.14 am to Rs 12.50, up by 0.32 per cent. Its 52-week high is Rs 20.00 and 52-week low is Rs 8.67.