IDBI Bank reduces MCLR by 5-10 bps to 8.95% across various tenors

Life Insurance Corporation of India (LIC)-owned IDBI Bank on Wednesday 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 per cent.

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 per cent, 8.15 per cent and 8.60 per cent respectively, the bank said in a release.

The state-run Oriental Bank of Commerce (OBC) Tuesday cut its one year MCLR by 5 basis points to 8.70 per cent.

For six-month tenor, OBC is offering MCLR of 8.60 per cent as against earlier rate of 8.70 per cent.

Last week, Bank of Maharashtra also reduced its MCLR for one-year tenor loan by 10 basis points to 8.60 per cent.

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 per cent.

This was the third consecutive repo rate cut by RBI, with cumulative reduction of 75 basis points in 2019, so far.