Bank of Maharashtra announced on October 19 that it has raised its marginal cost of funds-based lending rate (MCLR for more than six months tenure by 5bps from 9 percent to 9.05 percent.
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The new rate will come into effect from October 19. The rates for other tenures remain unchanged.
MCLR is the minimum interest rate at which a bank can offer a loan to a customer. It also acts as an internal reference rate for a bank to calculate interest rates for various other types of loans that it offers.
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Any increase in MCLR directly impacts the cost of loans for customers, while also boosting the bank’s margins on loans.
The bank, on October 15, reported a 44.28 percent jump in consolidated net profit at Rs 1,327.08 crore in the second quarter of FY25, compared to Rs 919.75 crore in the year-ago period.
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Shares of Bank of Maharashtra, on October 18, ended 0.39 percent higher at Rs 54.18 apiece on BSE.
