Bank of Maharashtra cuts home, car loan rates by upto 20 basis points

In order to push retail loans, public sector lender Bank of Maharashtra (BoM), on Saturday, cut the lending rate for home loans and car loans by upto 20 basis points. The revised rates would come into effect from August 14, 2023.  

In contrast, it has hiked its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points in select tenors upto one year.

The Pune-based lender, in a statement, said that the revised rate for home loan would be 8.5 per cent as against old rate of 8.6 per cent and for car loans, it would be 8.7 per cent, as against 8.9 per cent being old rate.

The revision in retail loan rate is not tied to specific campaigns and hence it is not for a specific time period. This is part of a regular retail lending strategy of the vehicle segment, bank officials said.

The lender has guided for 20-22 per cent Year-on-Year (YoY) growth in overall advances for 2023-24. Its advances grew by 24.63 per cent YoY basis to Rs 1.75 trillion with credit to deposit ratio of 71.89 per cent till end of June 2023.  

Out of this, the retail loan portfolio expanded by 24.46 per cent to Rs 44,954 crore. The home loan – 17.83 per cent YoY growth at Rs 25,695 crore and the vehicle segment – 8.1 per cent YoY growth at Rs 2,400 crore at the end of June 2023.

MCLR is now mostly applicable to corporate loans. The portfolio comprising corporate and other loans grew by 24.35 per cent YoY to Rs 73,347 crore, forming 42 per cent of total advances at the end of June 2023.