Mumbai: Life Insurance Corporation of India (LIC)-owned IDBI Bank on Wednesday reduced its marginal cost of funds based lending rate (MCLR) by 5-10 basis points across various tenors, with immediate effect.
The lender has reduced its one-year MCLR or the minimum lending rate to 8.95%.
The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced.
New overnight, one-month, six-month rates are 7.90%, 8.15% and 8.60% respectively, the bank said in a release.
The state-run Oriental Bank of Commerce (OBC) on Tuesday cut its one year MCLR by 5 basis points to 8.70%.
For six-month tenor, OBC is offering MCLR of 8.60% as against earlier rate of 8.70%.
Last week, Bank of Maharashtra also reduced its MCLR for one-year tenor loan by 10 basis points to 8.60%.
In the second bi-monthly monetary policy review announced on 6 June, the Reserve Bank of India (RBI) had reduced repo rate by 25 basis points to 5.75%.
This was the third consecutive repo rate cut by RBI, with cumulative reduction of 75 basis points in 2019, so far.
This story has been published from a wire agency feed without modifications to the text.