United Bank of India cuts MCLR by 5 basis points, effective Thursday

Union Bank of India

State-owned United Bank of India has reduced its MCLRs by 5 basis points across tenures, effective Thursday.

The bank's asset-liability management committee in its meeting on Tuesday revised tenure-based MCLRs of the bank to be effective from Thursday, it said in a regulatory filing.

One-year marginal cost of funds-based lending rate (MCLR) has been reduced to 8.80 per cent from 8.85 per cent.

The one-year MCLR is the benchmark against which most of the consumer lending, such as auto, personal and home loans, are priced.

Among others, the six-month and three-month MCLRs have been cut to 8.60 per cent and 8.50 per cent, respectively.

Likewise, the one-month and overnight MCLR rates are reduced by five basis points (bps) each, the bank said.

One basis point is equal to one-hundredth part of a percentage.

The banks review their MCLRs every month.