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Dena Bank to cut MCLR rate by up to 20% from Oct 1 across all tenors

MCLR is calculated on the marginal cost of borrowing and return on net worth for banks

Press Trust of India  |  New Delhi 

Dena Bank
Dena Bank

Public sector lender on Friday said it will reduce its marginal cost based (MCLR) by 0.20 percentage point from October 1.

"has reduced the marginal cost of funds based lending rate (MCLR) in all tenors," the bank said in a statement. The revised rates will come to effect from October 1, 2017, it said further.

For overnight and 3-month tenors, the MCLRs are cut by 0.20 per cent each to 8 per cent and 8.10 per cent respectively.

The with 3 & 6 months and 1-year tenors will have a reduced by 0.15 per cent each to 8.05 per cent, 8.20 per cent and 8.25 per cent each respectively.

said it has also reduced its base rate from 9.70 per cent to 9.60 per cent from October 1.

The mechanism was introduced into the in April 2016 as an alternative to the base rate, below which cannot lend, for new borrowers.

is calculated on the marginal cost of and return on net worth for

closed 0.97 per cent down at Rs 30.65 on

First Published: Fri, September 29 2017. 18:38 IST