Bank approved the Marginal Cost of Funds Based Lending Rate,

Public sector Bank Indian Bank has announced marginal cost of funds based lending rates as per the Reserve Bank guidelines to be effect from today.

The bank's asset liability committee had approved the Marginal Cost of Funds Based Lending Rate, which ranges from 9.20 per cent for overnight, 9.25 per cent for one month, 9.30 per cent for three months, 9.35 per cent for six months, a bank statement said.

For 12 months, the rates were fixed at 9.45 per cent, 9.55 per cent for three years, 9.70 per cent for five years.

The rates will be applicable for all the loan sanctions and renewals with effect from April one, the statement said.

All banks need to follow Marginal Cost of Funds based Lending Rate (MCLR) system, a new uniform methodology to ensure fair interest rates to borrowers as well as to banks.

The MCLR is expected to address the RBI's primary objective, of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates.

Yesterday, State Bank of India had revised lending rates based on marginal cost of funds

from Goutam Sinha Ray ex GM OBC