Oriental Bank of Commerce, IDBI Bank cut MCLR up to 15 basis points

The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to reduce the key interest rate by 35 bps

Oriental Bank of Commerce and IDBI Bank on Thursday announced a cut in the range of 0.05 to 0.15 percentage point in the marginal cost of funds based lending rates (MCLR) for various tenors.

The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to reduce the key interest rate (repo) by 0.35 percentage point to a nine-year low of 5.40 per cent.

Oriental Bank of Commerce has decided to decrease its MCLR by up to 10 basis points (0.10 percentage point) across various tenors, the bank said in a release.

The benchmark one-year MCLR is now 8.55 per cent, down by 0.10 percentage point from earlier rate. Most of the consumer loans such as personal, auto and home are priced on the basis of the one-year MCLR.

The MCLR for other tenors, overnight to up to six-month, will be lower by 0.05-0.10 percentage point.

IDBI Bank announced a reduction of 0.10 percentage point in its one-year MCLR to 8.95 per cent. The three-month to three-year rates are down by 0.05-0.15 percentage point to 8.35-9.10 per cent.

The MCLR rates for overnight and one-month MCLR's have been kept unchanged.

The new MCLR of OBC will come to effect from August 10, while that of IDBI Bank will be in place from August 12.