State-owned Oriental Bank of Commerce (OBC) has cut the marginal cost of funds-based lending rate (MCLR) by up to 0.10 per cent for various tenors with effect from Tuesday. "This is to inform that the bank has revised MCLR for different tenors with effect from June 11," the bank said in a regulatory filing.
MCLR for a one-month loan and 6-month tenor has been reduced by 0.10 per cent to 8.35 per cent and 8.60 per cent, respectively. Earlier, MCLR for a one-month loan and 6-month tenor was 8.45 per cent and 8.70 per cent respectively.
Likewise, for one-year tenor loans, MCLR has been decreased by 0.05 per cent to 8.70 per cent from 8.75 per cent earlier. OBC has left MCLR for overnight and 3-month tenor unchanged at 8.30 per cent and 8.50 per cent, respectively.
The announcement came after the Reserve Bank of India cut the repo rate by 25 basis points to 5.75 per cent in its bi-monthly policy meeting last week, taking it down to a nine-year low since July 2010. Banks review MCLR every month.
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