IOB, Bank of Maharashtra cut lending rates

State-owned Indian Overseas Bank and Bank of Maharashtra on Wednesday announced a reduction in their marginal cost of funds based lending rate (MCLR).

"Our Bank has revised the MCLR w.e.f 10.05.2020 until further review," Indian Overseas Bank said in a regulatory filing.

The Chennai-headquartered lender said the MCLR for the benchmark one-year tenor loan has been cut by 0.10 per cent to 8.15 per cent, with effect from May 10.

The one-year MCLR is the benchmark for most consumer loans, including personal, car and home.

Rates for other tenors, from three months to three years, have been reduced in the range of 0.05-0.10 per cent. No change has been made for overnight and one-month MCLR.

Pune-based Bank of Maharashtra reduced the one-year MCLR by 0.10 per cent to 7.90 per cent.

In terms of RBI guidelines, the bank has reviewed its lending rates and decided to reduce MCLR with effect from May 7, it said in a filing to the exchanges.

For overnight to six-month tenor MCLRs, the rates vary from 7.40 per cent to 7.70 per cent.

Meanwhile, Canara Bank has kept the MCLR unchanged, with the one-year benchmark standing at 7.85 per cent.