Canara Bank revises lending rates based on MCLR

New Delhi: Public sector Canara Bank on Wednesday said it has revised the lending rates based on the marginal cost of funds (MCLR) for May to 8.80-9.35 percent.

"All rupee loans sanctioned and credit limits renewed during the month of May, 2016 would be priced with reference to the tenor based MCLR", Canara Bank said in a regulatory filing.

Several banks including country's largest lender SBI have announced changes in their MCLR rates.

The MCLR regime came into play as per the Reserve Bank guidelines that came to effect from April 1.

All banks need to follow 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.