The bank has reduced the marginal cost of funds based lending rate with effect from December 1, 2016, it said in a regulatory filing.
For a tenor of five years, the new MCLR is down by 0.05 per cent to 9.45 per cent.
While that for three-years, one-year, six-month, three- month, one-month and overnight tenor it has been cut by 0.1 per cent each in range of 9.30 per cent to 8.90 per cent.
For a six month tenor, the lending rate will be 0.05 per cent lower at 9.45 per cent, while that for one month and overnight period it is cut by 0.3 per cent each to 9 and 9.05 per cent respectively.
Calculated on the marginal cost of borrowing and return on net worth for banks, it has been introduced to ensure fair interest rates to borrowers as well as banks.
The MCLR rates are revised every month.
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