Allahabad Bank cuts MCLR by 5 bps across tenors, no change in one-month MCLR of 7.85%; revised rates to be effective from tomorrow

  • The benchmark one-year tenor MCLR will now be 8.25 percent as compared to the existing 8.30 percent

  • Three and six-month tenor MCLRs have been cut by 5 bps each in the range of 7.75-8.10% and there has been no change in one-month MCLR of 7.85%

  • Several other banks, including SBI, have revised their MCLR following RBI's policy rate announcement on 6 February

New Delhi: Allahabad Bank has cut the marginal cost of funds based lending rate (MCLR) by 0.05 percentage points across tenors, effective 14 February.

The Asset Liability Management Committee of the bank has reviewed the existing MCLR and decided for a downward revision by 5 basis points (bps) across different MCLR tenors, the bank said in a regulatory filing.

 Allahabad Bank cuts MCLR by 5 bps across tenors, no change in one-month MCLR of 7.85%; revised rates to be effective from tomorrow

Representational image. Reuters

The benchmark one-year tenor MCLR will now be 8.25 percent as compared to the existing 8.30 percent.

Most of the consumer loans, such as retail, automobile and personal, are based on one-year MCLR.

Likewise, the overnight, three and six-month tenor MCLRs have been cut by 5 bps each in the range of 7.75-8.10 percent. There has been no change in one-month MCLR of 7.85 percent.

The revised rates will be effective from Friday, Allahabad Bank said.

Several other banks, including State Bank of India (SBI), have revised their MCLR following Reserve Bank of India (RBI)'s policy rate announcement on 6 February.

Even though the regulator kept the repo rate unchange at 5.15 percent, banks were given other relief in the form of cash reserve ratio (CRR) relaxation for loans to MSMEs.

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Updated Date: Feb 13, 2020 15:28:59 IST