The Pune-based Bank of Maharashtra (BoM) has announced an increase in its marginal cost of funds-based lending rate (MCLR) by 10 basis points to 8.60% from 8.70%, according to a recent regulatory filing. The change, which took effect on Wednesday, impacts the pricing of consumer loans including auto, personal, and home loans. This move aligns with the InvestingPro Tip that BoM has been experiencing a strong return over the last three months, suggesting a positive financial outlook for the bank.
Simultaneously, BoM has also increased its fixed deposit rates by up to 125 basis points or 1.25%, starting from Thursday. This adjustment affects both fixed deposits and special schemes across different periods. Notably, there has been a significant rise of 125 basis points for tenures of 46-90 days and a one-year interest rate now stands at 6.50%. This aligns with the InvestingPro Tip that BoM has been a prominent player in the Banks industry, demonstrating its ability to make strategic financial decisions to benefit its customers and stakeholders.
As part of a broader savings encouragement strategy, BoM is offering attractive rates for deposits that exceed one year. This move is expected to incentivize customers to save more with the bank by taking advantage of the higher interest rates on offer. This is in line with the InvestingPro Tip that BoM stockholders receive high returns on book equity, which could be an attractive proposition for potential investors.
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