Bank of Maharashtra cuts benchmark one-year MCLR by 0.10% to 8.60%

A day after the RBI cut the key repo rate, public sector Bank of Maharashtra Friday announced to cut the benchmark one-year MCLR by 0.10 per cent to 8.60 per cent.

Bank of Maharashtra has reviewed and reduced its marginal cost of funds based lending rates (MCLR) with effect from June 7, 2019, it said in a release.

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 per cent, down by 0.05 per cent, while the three-month tenor rate has been slashed by an equal margin to 8.40 per cent.

The Reserve Bank in its second bi-monthly policy decision announcement Thursday cut the repo rate -- at which it lends to banks -- by 0.25 per cent to 5.75 per cent, 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 per cent in 2018-19.

The RBI has also cut down the GDP expansion forecast to 7 per cent for the current fiscal, against its earlier projection of 7.2 per cent due to slowdown in domestic activities and escalation in global trade war.