Private sector lender IDBI Bank on Thursday revised its marginal cost of funds-based lending rates (MCLRs) across tenures, a day after the Reserve Bank of India (RBI) cut its repo rate by 35 basis points (bps).
The one-year MCLR was lowered by 10 bps to 8.85% per annum with effect from August 12. The two-year MCLR has been reduced by 15 bps to 8.95%, three-year by 10 bps to 9.1%, three-month by 5 bps to 8.35% and six-month by 10 bps to 8.5%. The one-month and overnight rates remain unchanged.
Meanwhile, Oriental Bank of Commerce also decided to decrease its MCLR by up to 10 basis points across various tenors, the bank said in a release. Transmission of monetary policy continues to be a sticky point between banks and the regulator. Despite a cumulative 75-bps cut in the repo rate between February and June this year, banks have reduced their weighted average lending rates (WALR) on fresh rupee loans by a mere 29 bps during the same period, RBI governor Shaktikanta Das said on Wednesday.
On Wednesday, SBI had reduced MCLRs by 15 bps across tenures, effective August 10.
