Canara Bank, Bank of Maharashtra slash MCLR by 10-20 bps

State-run Canara Bank and Bank of Maharashtra on Monday announced reduction in their marginal cost of funds based lending rates (MCLR) by 10 basis points and 20 basis points, respectively, across all tenors, effective July 7. Bengaluru-based Canara Bank has cut its one-year MCLR to 7.55 percent from 7.65 percent earlier.

Overnight and one-month lending rates have been cut by 10 basis points to 7.20 percent each. Three months MCLR rate has been revised to 7.45 percent from 7.55 percent, Canara Bank said in a release. Pune-headquartered Bank of Maharashtra (BoM) has reduced one-year MCLR to 7.50 percent from 7.70 percent.

Its overnight, one-month and three months MCLR have been cut to 7 percent (from 7.20 percent), 7.10 percent (from 7.30 percent) and 7.20 percent (from 7.40 percent), respectively. BoM has revised downwards its six months MCLR to 7.30 percent from 7.50 percent.

"The reduction in our MCLR is aimed to support economic growth and industrial development," BoM said in a release. The lender has slashed MCLR for the fourth consecutive month.