In a borrower-friendly move, both Punjab National Bank (PNB) and Bank of India (BoI) have reduced their MCLR (Marginal Cost of Funds–based Lending Rates) for September 2025. PNB lowered its MCLR by up to 15 basis points, and BoI trimmed rates between 5 to 15 basis points across various tenures (excluding overnight). These changes took effect from 1 September 2025, even as the RBI’s repo rate remains steady at 5.5% from its August policy meeting.
The cuts could ease the EMI burden for borrowers on MCLR-linked loans, improving affordability and boosting consumer sentiment. It also reflects prudent internal decision-making by these banks to aid credit demand, independent of central bank policy. Such rate adjustments may nudge other lenders to follow suit, potentially stimulating economic activity.
