IDBI Bank, Oriental Bank Cut MCLR By Up To 15 Basis Points
They announced a cut in the range of 0.05 to 0.15 percentage point in the MCLR for various tenors.
The Oriental Bank of Commerce and IDBI Bank Ltd. announced a cut in the range of 0.05 to 0.15 percentage point in the marginal cost of funds based lending rates for various tenors.
The rate cut follows an MCLR cut by the country's largest lender— the State Bank of India — post the Reserve Bank of India’s decision to reduce the repo rate by 35 basis points to a nine-year low of 5.40 percent.
Oriental Bank of Commerce has decided to decrease its MCLR by up to 10 basis points (0.10 percentage point) across various tenors, the bank said in a release.
The benchmark one-year MCLR is now 8.55 percent, down 0.10 percentage point from its earlier rate. Most of the consumer loans such as personal, auto and home are priced on the basis of the one-year MCLR.
The MCLR for other tenors, overnight to up to six-month, will be lower by 0.05-0.10 percentage points.
IDBI Bank announced a reduction of 0.10 percentage point in its one-year MCLR to 8.95 percent. The three-month to three-year rates are down by 0.05-0.15 percentage point to 8.35-9.10 percent.
The MCLR rates for overnight and one-month MCLR's have been kept unchanged.
The new MCLR of OBC will come to effect from Aug. 10, while that of IDBI Bank will be in place from Aug. 12.