Bank of Maharashtra, IDBI Bank cut lending rates by 10 to 15 basis points

Bank of Maharashtra and IDBI Bank lowered their lending rates by 10 to 15 basis points a day after the Reserve Bank of India (RBI) cut policy rates by 35 basis points.

State Bank of India (SBI), the country’s largest bank, had reduced lending rates by 15 basis points soon after the policy announcement on Wednesday.

Many more banks are expected to follow suit with rate cuts on the back of comfortable liquidity and low bond yields.

Bank of Maharashtra’s marginal cost of funds-based lending rate (MCLR) for three months now stands at 8.30 per cent, while the 1-year MCLR is now at 8.50 per cent after the rate cut. For IDBI Bank, three year MCLR is 8.35 per cent, and one year MCLR is at 8.85 per cent.