Life Insurance Corporation of India (LIC)-owned IDBI Bank on 12 June 2019 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) 11 June 2019 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 the 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.