Bandhan Bank cuts MCLR by 148 bps to 10.52%, micro loan rates down to 18.52%

One basis point is one hundredth of a percentage point. The decision was taken at the meeting of the bank's Asset Liability Committee.

The new rate takes effect from Jan 3.

Following this, Bandhan Bank will now charge its micro borrowers (loan up to Rs.1,00,000) at 18.52% p.a., down from 19.90%. With this, the bank has cut its loan rate for small borrowers by almost 4 percentage points since it started operations in August 2015.

"We will continue to pass on the benefit of lower cost of funds to our borrowers," said Chandra Shekhar Ghosh, MD and CEO, Bandhan Bank Ltd. "Our deposit portfolio has risen to Rs. 19,000 crore and 27% of this is current and savings accounts (CASA)," he said. "We are always sensitive to the needs of the poor, lower middle class and middle class borrowers." Ghosh said.

Small borrowers account for 95% of the bank's Rs. 18,500 crore credit portfolio.

The Kolkata-headquartered bank has two divisions -- general banking and micro banking, offering a suite of retail financial solutions, including a variety of savings and loan products. Currently, the savings bank account interest rate is 6% p.a. for balance above Rs.1 lakh and 4.25% p.a. for balance up to Rs.1 lakh.

For term deposits, the maximum interest rate offered is 8 % for one year with an additional 0.5% for senior citizens.

Currently, Bandhan Bank operates across 32 Indian states and Union Territories through a network of 760 branches, 2,416 Doorstep Service Centres (DSCs) and 270 ATMs. Its more than 9.8 million customers are being served by a dedicated team of 23,000 employees.