Bank of Maharashtra to cut RLLR by 75 basis points

Bank of Maharashtra announced that it will reduce its repo linked lending rate (RLLR) by 75 basis points from April 7, 2020.

In a BSE filing released on Saturday evening, the major public sector bank said that all retail loans including education, housing and vehicles as well as MSME loans, which are linked to RLLR, will now be available at cheaper rates.

Bank of Maharashtra (BoM) added that it will also reduce its marginal cost of funds-based lending rates (MCLR) up to 25 basis points as well as revised one-year MCLR to eight per cent from 8.5 per cent. Besides, for six months, MCLR rate has been revised to 7.80 per cent from 7.90 per cent.

The bank informed that the reduction in MCLR has been done with an aim to support economic growth and industrial development as well as to ensure rate transmission.

Notably, several banks have reduced their repo rates, following the recent decision made by Reserve Bank of India (RBI) to cut repo rates by 75 basis points.

At the time of market closing on Friday, the stock of Bank of Maharashtra was trading at Rs 8.83, down by 0.79 per cent against its previous close of Rs 8.90. Its 52-week high is Rs 20.00 while, its 52-week low is Rs 7.71 on BSE.