Following its larger rivals, LIC-owned IDBI Bank has reduced its lending rates by 5 basis points for most of the tenors, effective Friday. The new one-year marginal cost of funds-based lending rate (MCLR), to which most of the loan pricing is based on, has been reduced to 9 percent, the bank said in a statement Thursday. The revised six month and two-year MCLR now stand at 8.60 percent and 9.25 percent, respectively. The bank has reduced its one-month lending rate by 10 basis points to 8.15 percent.
On Tuesday, the country's largest lender State Bank had lowered its lending rate by 5 basis points across all tenors. Its new one-year MCLR now stands at 8.50 percent. Other state-run lenders -- Indian Overseas Bank and Bank of Maharashtra have also reduced their lending rates by 5 basis points. Banks have started reducing MCLR following a 25 basis point repo rate cut by the Reserve Bank in its first bi-monthly monetary policy review announced on April 4.
(With inputs from agencies.)