Bank of Baroda, Union Bank of India reduce lending rates across all tenors

State-run lenders Bank of Baroda (BoB) and Union Bank of India (UBI) on Wednesday announced cut in their marginal cost of funds-based lending rates (MCLR) across all tenors.

While the BoB's MCLR cut of 15 basis points (bps) is effective from June 12, the 10 bps revision in UBI's rates would come into force on June 11.

Bank of Baroda has revised its one-year MCLR to 7.65 per cent from 7.80 per cent, a report by the news agency Press Trust iof India said.

Its six-month MCLR has been revised downwards to 7.50 per cent from 7.65 per cent earlier.

In a separate release, UBI said its one-year MCLR has been reduced to 7.60 per cent from 7.70 per cent.

The six months, three months and one-month MCLR of UBI have been cut to 7.45 per cent 7.30 per cent and 7.15 per cent respectively.

The country's largest lender State Bank of India (SBI) has reduced its MCLR by 25 basis points across all tenors from Wednesday.

Private sector lender HDFC Bank and state-run Bank of Maharashtra (BoM) have also slashed their MCLRs by 5 bps and 20 basis points respectively, from June 8.

Last week, the second-largest state-run lender Punjab National Bank (PNB) had cut its MCLR by 15 basis points across all tenors.

The recent cuts in MCLR by banks have come after the Reserve Bank of India (RBI) slashed repo rate by 40 basis points to 4 per cent on May 22.

Most of the banks have also reduced their lending rates linked to repo rate by 40 basis points.