Mumbai: Life Insurance Corporation of India (LIC)-owned IDBI Bank Wednesday reduced its marginal cost of funds based lending rate (MCLR) by 5-10 basis points across various tenors, with immediate effect.
The lender has reduced its one-year MCLR or the minimum lending rate to 8.95 percent.
The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced.
New overnight, one-month, six-month rates are 7.90 percent, 8.15 percent and 8.60 percent respectively, the bank said in a release.
The state-run Oriental Bank of Commerce (OBC) on Tuesday cut its one-year MCLR by 5 basis points to 8.70 percent.
For six-month tenor, OBC is offering MCLR of 8.60 percent as against an earlier rate of 8.70 percent.
Last week, Bank of Maharashtra also reduced its MCLR for a one-year tenor loan by 10 basis points to 8.60 percent.
In the second bi-monthly monetary policy review announced on June 6, the Reserve Bank of India (RBI) had reduced repo rate by 25 basis points to 5.75 percent.
This was the third consecutive repo rate cut by RBI, with cumulative reduction of 75 basis points in 2019, so far.
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Updated Date: Jun 12, 2019 15:34:29 IST