The largest bank State Bank of India (SBI) had earlier announced 25 bps cut in MCLR, effective June 10.The one-year MCLR of SBI came down to 7% rom 7.25% earlier.
Private lender HDFC Bank along with the state-owned Bank of Baroda (BoB) and Union Bank of India on Wednesday announced reduction in marginal cost of funds-based lending rate (MCLR) across tenors. While HDFC Bank has reduced MCLR by 5 basis points (bps), BoB and Union Bank of India have cut MCLR by 15 and 10 bps, respectively. The move comes amid similar steps taken by the peers after two rate cuts by the Reserve Bank of India (RBI). The banking regulator has cut repo rate by 115 bps since March, 2020.
As per details on the website of HDFC Bank, the lender has reduced its MCLR by 5 bps across tenors. The rate cut is effective from June 8, 2020. HDFC Bank said its overnight MCLR stands reduced to 7.3% and one month MCLR stands at 7.35%. The one-year MCLR, to which many of the consumer loans are tied, will now be 7.65%, while three-year MCLR has been set at 7.85%. ICICI Bank had earlier lowered MCLR by 5 bps, effective from June 1, 2020.
The state lenders Bank of Baroda and Union Bank of India on Wednesday announced reduction in MCLR through separate releases. While Bank of Baroda’s 15 bps MCLR cut is effective from June 12, Union Bank of India’s 10 bps revision would come into force from June 11, 2020. Bank of Baroda has revised one-year MCLR to 7.65% from 7.8%, the lender informed in the release. Similarly, Union Bank of India said that it has reduced one-year MCLR to 7.6% from 7.7%.