Mid-sized private sector lender Yes Bank today cut its marginal cost of funds based lending rate (MCLR) by 0.10 per cent across tenors, reacting to similar moves by competition.
The city-headquartered lender’s one year MCLR will now be 9.5 per cent as against the earlier 9.6 per cent, it said in a statement.
The rate cut across tenors has been 0.10 per cent, it added.
Its overnight rates — generally the lowest — were not immediately available.
The move comes a day after the country’s largest lender SBI cut its MCLR by 0.05 per cent, under which its lowest offering came down to 9.15 per cent.
Other lenders, including Yes Bank’s private sector rivals, have been regularly revising rates in order to keep up with competition since the introduction of the new system last month.
Yes Bank had last week guided toward an expansion of up to 0.20 per cent in margins during the fiscal despite the introduction of MCLR.