State-owned Bank of India on Thursday slashed its one-year marginal cost of funds-based lending rate by 10 basis points (bps) to 8.3%.
State-owned Bank of India on Thursday slashed its one-year marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps) to 8.3%. The bank also slashed MCLRs for some other tenors by 5-10 bps and said the new rates will come into effect on Sunday.
On Wednesday, IDBI Bank had reduced by 10 basis points (bps) to 8.55%, saying that the reduction in MCLR was expected to positively impact loan growth, thereby supporting the growth impulses in the economy. Last week, Dena Bank had reduced its one-year MCLRs by 15 bps. Other public sector lenders have also cut their lending rates recently. Punjab National Bank (PNB) and Union Bank of India had lowered their MCLRs.
The one-year MCLR at PNB now stands at 8.15%, down from 8.35% earlier. Union Bank had reduced its one-year MCLR by 20 bps to 8.2%. This series of cuts follows the Reserve Bank of India’s (RBI) decision to lower the repo rate by 25 bps to 6% at its August policy.