Mumbai, June 10 : Nationalised Banks — Bank of Baroda and Union Bank of India — on Wednesday announced a cut in their marginal cost of funds-based lending rates (MCLR) across all tenors.
BOB said in a release that effective June 12, it would cut MCLR by 15 basis points while Union Bank of India said its lending rates would be cut by 10 basis points from June 11.
BoB has revised its MCLR to 7.65 per cent from 7.80 per cent. Earlier its six-month MCLR had been revised downwards to 7.50 per cent from 7.65 per cent.
The Union Bank of India, in another release, said its one-year MCLR had been reduced to 7.60 per cent from 7.70 per cent. The six months, three months and one-month MCLR had been cut down to 7.45 per cent, 7.30 per cent and 7.15 per cent respectively.
India’s largest Bank — State Bank of India — has also reduced MCLR by 25 basis points across all tenors with effect from Wednesday.
HDFC and State-run Bank of Baroda also reduced their MCLR by 5 basis points and 20 basis points respectively from June 8.
Few days back, Punjab National Bank had slashed its MCLR by 15 basis points across all the tenors.
The Banks have resorted to cut in MCLR close on the heels of Reserve Bank of India slashing Repo rate by 40 basis points to 4 per cent on May 22 last. Repo rate is the rate at which RBI lends money to Commercial banks in the event of shortfall of funds. Repo rate is used by monetary authorities to control inflation.
