Bank of Maharashtra reduces one-year MCLR by 10 bps to 8.60% post RBI repo rate cut

New Delhi: A day after the RBI cut the key repo rate, public sector Bank of Maharashtra on Friday announced to cut the benchmark one-year MCLR by 0.10 percent to 8.60 percent. Bank of Maharashtra has reviewed and reduced its marginal cost of funds based lending rates (MCLR) with effect from 7 June, 2019, it said in a release. [caption id=“attachment_3361084” align=“alignleft” width=“380”] Representational image. PTI.[/caption] The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced. Among other loan tenors, the overnight MCLR will attract an interest of 8.15 percent, down by 0.05 percent, while the three-month tenor rate has been slashed by an equal margin to 8.40 percent. The Reserve Bank in its second bi-monthly policy decision announcement on Thursday cut the repo rate – at which it lends to banks – by 0.25 percent to 5.75 percent, aimed at spurring demand and boost the economy. RBI Governor Shaktikanta Das had expressed concerns that banks were slow in transmitting the benefits to the consumer despite successive rate cuts. India’s economic growth is estimated to have slowed to a five-year low of 6.8 percent in 2018-19. The RBI has also cut down the GDP expansion forecast to 7 percent for the current fiscal, against its earlier projection of 7.2 percent due to a slowdown in domestic activities and escalation in a global trade war.