Business
Punjab National Bank Lifts MCLR Across All Six Tenures to 8.10%-9.20%
By News Desk ·
Key takeaways
- Punjab National Bank raised its MCLR by 10 basis points across all six tenures, effective November 1, 2026.
- The bank's MCLR range moved to 8.10%-9.20% from 8.00%-9.10%.
- The base rate stayed at 9.50% and the repo-linked lending rate at 8.35%.
- Punjab National Bank's CEO said in October 2026 the bank expects a 7-basis-point NIM improvement from the October rate hike.
Punjab National Bank raised its marginal cost of funds-based lending rate by 10 basis points across all six tenures, effective November 1, 2026, taking the range to 8.10%-9.20% from 8.00%-9.10%. NDTV Profit reported the revision, which the bank disclosed in a BSE filing.
Punjab National Bank's New MCLR Ladder
Punjab National Bank is a Government of India-owned public sector bank founded in 1895, with 10,092 domestic branches and 51,519 touchpoints serving retail, corporate, MSME, agricultural and NRI customers.
The overnight MCLR rose to 8.10% from 8.00%, and the one-month rate to 8.35% from 8.25%. The three-month MCLR moved to 8.60% from 8.50%, the six-month rate to 8.75% from 8.65%, the one-year rate to 8.90% from 8.80% and the three-year rate to 9.20% from 9.10%.
MCLR is the minimum lending rate below which banks generally cannot offer loans, subject to regulatory exceptions, and it benchmarks pricing for several floating-rate home, personal and business loans. The bank left its base rate at 9.50% and its repo-linked lending rate, including a benchmark spread of 0.35%, at 8.35%. The revision covers MCLR-linked lending only.
Borrowers with MCLR-linked floating-rate loans may see higher costs when their rates reset, with the effect depending on individual loan agreements, reset dates and outstanding balances.
Punjab National Bank's Balance Sheet Scale
According to akta.pro company records, Punjab National Bank's balance sheet stood at ₹19.90 trillion as of June 2026, up nearly 9% year on year, and is projected to more than double to ₹48 trillion by 2030. The same records put net profit for the first quarter of FY27, ended June 2026, at ₹5,253 crore, a 213.6% surge from ₹1,675 crore a year earlier, with net interest income of ₹10,798 crore, up 2.1% and the highest in six quarters.
Rate Expectations Before the Revision
On October 19, 2026, the bank's CEO said it expected a 7-basis-point improvement in net interest margin from the October rate hike, with 56% of loans linked to EBLR, CNBC TV18 reported. The bank's NIM had risen to 2.74% that quarter, and it expected to meet its 2.6%-2.8% guidance.
On October 9, 2026, BusinessLine reported that the bank planned a debut dollar bond issue under the central bank's discounted swap window, targeting at least $500 million and up to $1 billion.
Punjab National Bank's Next Steps
On September 16, 2026, the bank established a USD 1.50 billion Euro Medium Term Note Programme, filing the offering circular with India International Exchange, ScanX reported. The bank's trading window for designated persons and insiders closed on October 1, 2026, until 48 hours after the declaration of Q2FY27 results, ScanX reported.