Public sector Corporation Bank today said it has reduced its marginal cost of funds based lending rate (MCLR) by 0.10 percentage point for select loan maturities. The bank has cut the overnight and one-month MCLR by 0.10 per cent each to 7.90 per cent each. These tenor based MCLR, for all new rupee loans and advances including renewals are to come to effect from November 15, 2017, the bank said in a regulatory filing. For rest of the tenors, the bank has kept the MCLRs unchanged. The MCLR mechanism was introduced into banking system in April 2016 as an alternative to the base rate, below which banks cannot lend, for new borrowers. MCLR is calculated on the marginal cost of borrowing and return on net worth for banks. Stock of Corporation Bank closed 1.01 per cent up at Rs 45.15 on BSE.
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