Punjab National Bank hikes MCLR rates by 5 bps effective July 1
Punjab National Bank has revised its Marginal Cost of Funds Based Lending Rates (MCLR) upwards by 5 basis points across all tenors, effective July 1, 2026. The one-year MCLR, a critical benchmark for consumer loans, now stands at 8.80%, up from 8.75%. However, the bank has maintained its Repo Linked Lending Rate (RLLR) at 8.10% and the Base Rate at 9.50%.
*this image is generated using AI for illustrative purposes only.
Punjab National Bank has increased its Marginal Cost of Funds Based Lending Rates (MCLR) by 5 basis points across all tenors effective July 1, 2026. The revision impacts loan pricing linked to the benchmark, with the overnight rate rising to 8.00% and the three-year tenor moving to 9.10%. This adjustment follows the bank's periodic review of lending rates based on the marginal cost of funds and operating expenses.
The bank communicated the revised rates to the stock exchanges on June 30, 2026. The hike applies uniformly across all specified maturities, ranging from overnight to three years. The one-year MCLR, a key benchmark for many consumer loans, has been revised upward to 8.80% from the previous 8.75%.
Revised MCLR Rates
The following table details the changes in the MCLR tenors effective from July 1, 2026, compared to the rates effective June 1, 2026:
| MCLR Tenor | Existing w.e.f. 01.06.2026 |
With effect from 01.07.2026 |
|---|---|---|
| Overnight | 7.95% | 8.00% |
| One Month | 8.20% | 8.25% |
| Three Month | 8.40% | 8.45% |
| Six Month | 8.60% | 8.65% |
| One year | 8.75% | 8.80% |
| Three years | 9.05% | 9.10% |
Other Benchmark Rates
While the MCLR has been increased, the bank has chosen to keep its other benchmark lending rates steady. The Repo Linked Lending Rate (RLLR) remains at 8.10%, which includes a Basic Spread of 0.35%. Additionally, the Base Rate stays unchanged at 9.50%. The stability in these rates contrasts with the upward revision in the MCLR structure.
Historical Stock Returns for Punjab National Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.46% | -2.34% | +1.21% | -15.96% | -7.47% | +150.24% |
Will this MCLR hike trigger similar rate increases by other public sector banks in the near term?
How might the divergence between rising MCLR and steady RLLR impact the bank's loan mix going forward?
Is this rate hike indicative of a sustained upward trend in the bank's cost of funds for the remainder of the fiscal year?
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