State-run Bank of India on Monday revised its MCLR-based lending rates by up to 20 basis points across various tenors, effective from Tuesday.
The lender has reduced its MCLR for overnight rates by 20 bps while for other tenors the cut is 10 basis points, a bank statement said, adding the overnight rates will stand at 7.75 per cent.
The new one-year MCLR is fixed at 8.20 per cent as against 8.30 per cent.
The move comes hours after the larger peer State Bank of India announced 10 bps reduction to 9.90 per cent in its one-year MCLR or marginal cost-based lending rates-based loan pricing. This makes the SBI rates the cheapest and this is the eighth consecutive lending rate reduction by the largest lender since the beginning of the fiscal.
HDFC Bank, the country's largest private sector bank has cut the marginal-cost based lending rate (MCLR) by up to 15 bps across all tenors. HDFC Bank's MCLR for 1 year tenor has been brought down to 8.15 per cent from the previous 8.30 per cent. It has been cut by 15 bps. For the 2 year and 3 year tenors, the rate cut has been of 15 bps.
The MCLR cuts across banks have come after RBI Governor Shaktikanta Das said that the apex bank would ensure that all the rate cuts are effectively transferred to the customers. He added that the RBI, however, is not in a hurry to further slash interest rates.
(With PTI inputs)