The state-run Punjab National Bank (PNB) has reduced the one-year marginal cost of funds-based lending rate (MCLR) by 0.05 percent to 7.30 percent, providing a big relief to its customers. The bank has cut down the six-month and three-month tenor MCLRs by 0.10 percent each to 7 percent and 6.80 percent, respectively. The new MCLR has come into effect from today (June 1, 2021). PNB has not changed overnight, one-month and three-year MCLRs.
Now, the customers will get loans on a lesser interest rate compared to earlier rates.
The minimum rate of interest at which banks give you the facility of interest is called the base rate, which means that banks cannot give loans to anyone below the base rate. This base rate is known as MCLR. It is determined by using marginal cost, periodic premium, operating expenses, and the cost of maintaining the cash reserves ratio.
PNB has also asked its customers to get a new checkbook by June 30 as it will be the last day to use the old one. PNB has advised customers to apply for a new checkbook by contacting their branch offices.
Why are customers being asked to get new checkbooks?
This is a result of the Oriental Bank of Commerce and the United Bank of India being berged with Punjab National Bank. After the merger of banks, the checkbook and IFSC code of the customers have changed. So, now the customers will now need a new checkbook.
PNB was founded in 1984. In terms of business and its network, PNB is the second-largest Indian public sector bank (PSB), next only to the State Bank of India (SBI). PNB bank has over 180 million customers, 10,910 branches and 13,000+ ATMs post-merger with United Bank of India and Oriental Bank of Commerce, effective from April 1 last year.