Indian Bank cuts lending rate by 30 basis points

State-owned Indian Bank on Wednesday announced a cut in its marginal cost of fund-based lending rate (MCLR) by 30 basis points across various tenors in line with market competition.

The new interest rates will be effective from May 3, Indian Bank said in a regulatory filing.

The bank has reduced its one-year MCLR by 30 basis points to 7.80 per cent from existing 8.10 per cent earlier, it said.

Overnight and one-month MCLRs have been reduced by 30 basis points to 7.50 per cent and 7.55 respectively.

Three-month MCLR has been revised to 7.70 per cent from 8 per cent while six-month rate has come down to 7.75 per cent as compared to 8.05 per cent.

The rate cut is in line with easing of interest rate in the market following moderation in interest rates by the RBI last month.

The RBI reduced benchmark repo rate by 75 basis points to 4.40 per cent in the bi-monthly Monetary Policy Committee meeting on March 27.

The step was part of RBI's action plan to ease the economic burden of the coronavirus outbreak.