Business-Bank of Baroda cuts MCLR by up to 10 bps

State-owned Bank of Baroda has cut MCLR on various tenors by up to 10 basis points (bps), effective Sunday. The public sector bank has revised the marginal cost of funds-based lending rate (MCLR) with effect from July 7, 2019, it said in a regulatory filing.

The benchmark one-year MCLR has been cut by 10 bps to 8.60 percent as against 8.70 percent, earlier. The one-year tenor is the rate around which most of the consumer loans such as home, car and personal are set against. The one- and two-month MCLRs will attract a new rate of 8.30 percent and 8.40 percent, respectively, down 5 bps each from the earlier rates.

While for overnight and six-month tenor, the MCLR will be down to 8.20 percent and 8.55 percent, respectively, a reduction of 10 bps each. Earlier last month, other PSBs such as Bank of Maharashtra, Oriental Bank of Commerce and Corporation Bank had announced to cut MCLR after the RBI had announced its bi-monthly monetary policy review. The country's largest lender SBI had cut the interest rate on cash credit and overdraft with a limit of above Rs 1 lakh with effect from July 1.