Private sector RBL Bank has reduced the marginal cost of funds based lending rates (MCLR) by 0.30-0.45 per cent across different tenures.
The reduced MCLR rates will be applicable from tomorrow.
"RBL Bank has reduced its MCLR, the benchmark for floating rate rupee loans, by 30-45 basis points across different tenures effective December 22," the bank said in a statement.
This reflects the reducing cost of funds, the benefit of which will be passed on to the borrowers, the bank said.
The loans will have rate of 9.70 per cent each for overnight and one month tenure, 9.75 per cent for three months, while that for six month it will be charged at 9.80 per cent.
For one, two and three year tenure loans, the new lending rates will be 9.85 per cent, 9.95 per cent and 10.05 per cent, respectively.
"With the reduction in cost of funds, our ALCO (Asset Liability Committee) met recently and decided to reduce the lending rates; which is expected to benefit the customers and should give impetus to growth of loan book of the bank," said Naresh Karia, its Chief Financial Officer.
Shares of the bank were trading 0.71 per cent down at Rs 343 on BSE.
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