Kotak Mahindra, Allahabad Bank reduce MCLR

Kotak Mahindra Bank Thursday said it has reduced MCLR rates for various tenors by 0.05 percentage with effect from March 1. For one-year tenor loan, the marginal cost of funds based lending rate (MCLR) stands at 9 per cent, down from 9.05 per cent at present, the bank said in a BSE filing.

The one-year tenor loan is the benchmark to price most of the consumer loans. Among others, the bank has cut the MCLR for overnight, three-month and six-month tenors by 0.05 percentage each to 8.30 per cent, 8.60 per cent and 8.80 per cent, respectively.

The lender will review and publish the MCLRs on a monthly basis, Kotak Mahindra Bank said. State-run Allahabad Bank has cut down its one-year MCLR by 0.10 percentage to 8.65 per cent with effect from March 1, 2019, the bank said in a regulatory filing.

"The asset liability management committee (ALCO) of the bank has reviewed the existing MCLRs and decided for a downward revision of MCLRs by 10 basis points for all tenors," the lender said. For 2 and 3 years, it is down to 8.85 per cent and 8.95 per cent, respectively.