Oriental Bank of Commerce, IDBI Bank cut MCLR up to 15 basis points

Oriental Bank of Commerce and IDBI Bank on Thursday announced a cut in the range of 0.05 to 0.15 percentage point in the marginal cost of funds based lending rates (MCLR) for various tenors.

The rate cut follows an MCLR cut by the country's largest lender SBI post the RBI's decision to reduce the key interest rate (repo) by 0.35 percentage point to a nine-year low of 5.40 per cent.

Oriental Bank of Commerce has decided to decrease its MCLR by up to 10 basis points (0.10 percentage point) across various tenors, the bank said in a release.

The benchmark one-year MCLR is now 8.55 per cent, down by 0.10 percentage point from earlier rate. Most of the consumer loans such as personal, auto and home are priced on the basis of the one-year MCLR.

The MCLR for other tenors, overnight to up to six-month, will be lower by 0.05-0.10 percentage point.

IDBI Bank announced a reduction of 0.10 percentage point in its one-year MCLR to 8.95 per cent. The three-month to three-year rates are down by 0.05-0.15 percentage point to 8.35-9.10 per cent.

The MCLR rates for overnight and one-month MCLR's have been kept unchanged.

The new MCLR of OBC will come to effect from August 10, while that of IDBI Bank will be in place from August 12.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel