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IDBI Bank reduces MCLR by 5-10 bps to 8.95% across various tenors

he one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced

Press Trust of India  |  Mumbai 


Life Insurance Corporation of India (LIC)-owned on Wednesday reduced its marginal cost of funds based (MCLR) by 5-10 basis points across various tenors, with immediate effect.

The lender has reduced its one-year or the minimum to 8.95 per cent.

The one-year is the benchmark against which most such as auto, personal and home loans are priced.

New overnight, one-month, six-month rates are 7.90 per cent, 8.15 per cent and 8.60 per cent respectively, the bank said in a release.

The state-run (OBC) Tuesday cut its one year by 5 basis points to 8.70 per cent.

For six-month tenor, OBC is offering MCLR of 8.60 per cent as against earlier rate of 8.70 per cent.

Last week, also reduced its MCLR for one-year tenor loan by 10 basis points to 8.60 per cent.

In the second bi-monthly monetary policy review announced on June 6, the Reserve Bank of India (RBI) had reduced repo rate by 25 basis points to 5.75 per cent.

This was the third consecutive repo rate cut by RBI, with cumulative reduction of 75 basis points in 2019, so far.

First Published: Wed, June 12 2019. 15:38 IST