Bank of Maharashtra Trims 1-Year MCLR to 9.05%—Signals Easing Lending Costs

Bank of Maharashtra (BoM) has revised its one-year Marginal Cost of Funds-Based Lending Rate (MCLR) to 9.05%, down from 9.10%, effective June 27, 2025. The move reflects a marginal softening in the bank’s cost of funds and could translate into lower EMIs for borrowers with MCLR-linked loans.

 

The one-year MCLR is a key benchmark for pricing retail and corporate loans, including home and auto loans. This revision comes amid a broader trend of rate stabilization, as inflation moderates and liquidity conditions improve. BoM’s overnight and short-term MCLRs remain unchanged, indicating a targeted approach to rate adjustments.

 

Analysts view this as a positive signal for credit growth, especially in the MSME and retail segments, where BoM has a strong presence. The bank’s move also aligns with expectations of a possible RBI rate cut later this year.

 

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Source: Bank of Maharashtra – Official MCLR Circular