Corporation Bank cuts benchmark lending rate by 5bps

State-owned Corporation Bank Thursday announced a cut in its benchmark lending rate by 0.05 percentage points, a move that would make home, auto and other loans cheaper.

The bank has reduced the lending rate by 5 basis points (0.05 percentage point) across all tenors up to one year.

The new rates are effective from March 15, Corporation Bank said in a regulatory filing.

The marginal cost of funds based lending rate (MCLR) for overnight and one-month tenors would be 8.05 per cent and 8.20 per cent, respectively, it said.

The MCLR for one-year tenor was slashed to 8.90 per cent from 8.95 per cent. Most of the retail loans are benchmarked against one-year MCLR.