MCLR Rates Offered By Top Banks:
| Bank Wise MCLR Rates (In %) – 05 Mar 2018 | |||||||
|---|---|---|---|---|---|---|---|
| Banks | 3 years | 2 years | 1 year | 6 months | 3 months | 1 month | Overnight |
| State Bank of India | 8.10% | 8.05% | 7.95% | 7.90% | 7.85% | 7.80% | 7.70% |
| HDFC Bank | 8.40% | 8.20% | 8.10% | 7.90% | 7.85% | 7.80% | 7.80% |
| ICICI Bank | NA | NA | 8.20% | 8.15% | 7.90% | 7.85% | 7.85% |
| Axis Bank | 8.35% | 8.30% | 8.25% | 8.15% | 8.00% | 7.80% | 7.80% |
| PNB | 830% | NA | 8.15% | 8.10% | 8.00% | 7.90% | 7.75% |
| Citibank | NA | NA | 8.10% | 8.15% | 8.10% | 8.10% | 7.90% |
| Indusind Bank | 8.95% | 8.90% | 8.85% | 8.80% | 8.55% | 8.25% | 8.20% |
| Kotak | 8.60% | 8.60% | 8.60% | 8.30% | 8.10% | 7.70% | 7.70% |
| Yes Bank | NA | NA | 8.85% | 8.55% | 8.25% | 7.95% | 7.80% |
| RBL | 9.40% | 9.30% | 9.25% | 9.20% | 9.10% | 9.05% | 8.95% |
| DBS | NA | NA | 8.30% | 8.10% | 8.00% | 7.90% | 7.90% |
| IDFC | 8.70% | 8.60% | 8.50% | 8.25% | 7.90% | 7.90% | 7.85% |
| Bank of India | NA | NA | 8.30% | 8.25% | 8.10% | 8.00% | 7.70% |
| Andhra Bank | NA | NA | 8.40% | 8.30% | 8.20% | 8.15% | 8.10% |
| Allahabad Bank | 8.70% | 8.65% | 8.45% | 8.35% | 8.25% | 8.05% | 7.95% |
| Nainital Bank | 9.00% | 8.65% | 8.35% | 8.20% | 8.10% | 8.05% | 8.05% |
| Lakshmi Vilas Bank | NA | NA | 9.30% | 9.25% | 9.25% | 9.25% | 9.25% |
| Jammu and Kashmir Bank | 9.05% | 9.00% | 8.80% | 8.40% | 8.05% | 7.90% | 7.65% |
| Bank of Maharashtra | NA | NA | 8.65% | 8.55% | 8.20% | 8.15% | 8.10% |
| Canara Bank | NA | NA | 8.45% | 8.40% | 8.30% | 8.25% | 8.20% |
| Central Bank of India | NA | NA | 8.30% | 8.25% | 8.20% | 8.10% | 7.80% |
| Bandhan Bank | 10.74% | 10.61% | 10.20% | 10.12% | 10.11% | 10.07% | 10.05% |
| United Bank of India | NA | NA | 8.60% | 8.45% | 8.20% | 7.95% | 7.90% |
| Union Bank of India | 8.30% | 8.25% | 8.20% | 8.05% | 7.95% | 7.90% | 7.70% |
| UCO Bank | NA | NA | 8.45% | 8.35% | 8.15% | 8.00% | 7.90% |
| Punjab and Sind Bank MCLR | 8.85% | 8.85% | 8.40% | 8.20% | 8.10% | 8.00% | 8.00% |
| Dena Bank | NA | NA | 8.25% | 8.20% | 8.10% | 8.05% | 8.05% |
| Federal Bank | NA | NA | 8.90% | 8.80% | 8.70% | 8.65% | 8.60% |
| South Indian Bank | NA | NA | 9.00% | 8.45% | 8.15% | 8.00% | 7.90% |
| Standard Chartered | 9.05% | 8.90% | 8.55% | 8.50% | 8.45% | 8.40% | 8.05% |
| Deutsche Bank | NA | NA | 9.25% | 9.00% | 8.50% | 8.00% | 7.75% |
| BNP Paribas | 8.25% | 8.00% | 8.00% | 7.65% | 7.30% | 7.30% | 7.30% |
| Corporation Bank | NA | NA | 8.65% | 8.60% | 8.20% | 7.90% | 7.90% |
| Indian Bank | 8.55% | NA | 8.35% | 8.25% | 8.15% | 8.05% | 8.00% |
| Karnataka Bank | NA | NA | 8.75% | 8.40% | 8.35% | 8.30% | 8.25% |
| Dhan Laxmi Bank | NA | NA | 9.80% | 9.65% | 8.90% | 8.85% | 8.85% |
| DCB Bank | NA | NA | 9.72% | 9.52% | 9.05% | 8.80% | 8.60% |
| City Union Bank | NA | NA | 9.25% | 9.15% | 9.10% | 9.05% | 9.00% |
| IDBI Bank | 8.70% | 8.60% | 8.55% | 8.35% | 8.30% | 8.10% | 8.00% |
| Syndicate Bank | NA | NA | 8.45% | 8.25% | 8.10% | 8.05% | 8.00% |
| OBC | NA | NA | 8.40% | 8.30% | 8.25% | 8.20% | 8.10% |
| Indian Overseas Bank | 8.60% | 8.50% | 8.40% | 8.20% | 8.10% | 8.05% | 8.00% |
| Karur Vysya Bank | NA | NA | 9.00% | 8.80% | 8.65% | 8.65% | 8.65% |
Difference Between MCLR And Base Rate
| MCLR | Base Rate |
|---|---|
|
|
How to calculate MCLR?
In order to calculate the marginal cost of funds based lending rate, you must consider all the borrowing sources for a bank. A bank borrows from several sources including, fixed deposits, current accounts, savings accounts, etc. The rate of interest in these borrowing sources can be used by you for the calculation of marginal borrowing cost. You must understand that the source of a bank’s funds is not only borrowing, but also the equity (retained or infused earnings). Thus, return on equity can also be expected.
The formula prescribed by the Reserve Bank of India for calculation of MCLR is given below:
Marginal cost of funds = Marginal borrowing cost x 92% + return on the net worth x 8%
Banks must also maintain a cash reserve ratio of 4%. On this deposit, no interest is earned by the bank. Under MCLR, banks can avail some allowance called Negative Carry on CRR. Also, the operating costs must be considered and taken care of. There are several expenses of a bank that includes raising funds, opening branches, paying salary to its employees etc.
Thus, MCLR depends on
- Tenor premium,
- Operating costs of the bank,
- Negative carry on Cash Reserve Ratio, and
- Marginal cost of funds.
