Canara Bank cuts lending rates on some tenures by 5-15 bps, effective March 12

State-owned Canara Bank Ltd on Tuesday (March 11) announced a revision in its Marginal Cost of Funds Based Lending Rate (MCLR), effective March 12, 2025, with reductions of 5-15 basis points (bps) on select tenures.While shorter-tenor rates remain largely unchanged, the bank has reduced its two-year and three-year MCLR. “The Exchanges are hereby informed that the Marginal Cost of Funds Based Lending Rate (MCLR) of the bank with effect from 12.03.2025,” Canara Bank said in a regulatory filing.

The overnight MCLR has been lowered to 8.30% from 8.35%, while the one-month, three-month, six-month, and one-year rates remain unchanged at 8.35%, 8.55%, 8.90%, and 9.10%, respectively. The two-year MCLR has been reduced from 9.35% to 9.25%, and the three-year rate has been cut from 9.45% to 9.30%.Also Read: Canara Bank confident of surpassing deposit growth guidance this year

For the third quarter, Canara Bank reported a 12% year-on-year rise in net profit at ₹4,104 crore. This figure is higher than the CNBC-TV18 poll estimate of ₹3,930 crore. The PSU lender’s Net Interest Income (NII) for the third quarter came in at ₹9,149 crore, indicating a 3% decline from the same period in the previous financial year, where it was ₹9,417 crore.

Canara Bank’s asset quality showed positive trends, with the Gross Non-Performing Assets (GNPA) ratio at 3.34%, a decline of 105 basis points on a year-on-year basis. The net NPA ratio stood at 0.89%, a decline of 43 bps YoY.

Canara Bank’s deposits grew by 8.44% year-on-year and 1.6% quarter-on-quarter to ₹13.69 lakh crore, while advances rose 11.2% year-on-year and 4% quarter-on-quarter to ₹10.23 lakh crore.

Shares of Canara Bank Ltd ended at ₹83.31, up by ₹0.87, or 1.06%, on the BSE.

Also Read: Canara Bank increases MCLR rates on these tenures