Bank of Maharashtra cuts MCLR by up to 45 bps

State-owned Bank of Maharashtra Monday said it has reduced its marginal cost of funds based lending rates (MCLR) by up to 45 basis points across various tenors, effective from January 7.

The lender has slashed its one-year MCLR to 8.25 per cent from 8.40 per cent earlier.

Overnight rate has been reduced to 7.60 per cent from 8.05 per cent.

The new one-month and three-month MCLR rate now stands at 7.70 per cent and 7.75 per cent, respectively.

The bank has also revised its base rate by 10 basis points to 9.40 per cent.

Last week, mortgage player HDFC reduced its benchmark lending rate by 0.05 per cent.

New rates will now range between 8.20 per cent and 9 per cent, and the change will benefit all existing customers, HDFC had said.

Recently, SBI had slashed in its external benchmark-based rate by 25 basis points to 7.80 per cent from 8.05 per cent.

The rate cut by lenders come despite the RBI keeping its benchmark repo rate unchanged at 5.15 per cent in December monetary policy review.

While the RBI had cut repo rates by 135 bps in five policy reviews in 2019, the one-year median MCLR has declined by only 49 basis points.

The weighted average lending rate (WALR) on fresh rupee loans sanctioned by banks declined by only 44 basis points.