Corporation Bank cuts 1-yr MCLR by 5 bps to 8.85 pct

Corporation Bank Friday said it has reduced marginal cost of funds based lending rate (MCLR) for one-year tenor loan by 5 basis points to 8.85 per cent. The one-year MCLR is the benchmark against which most customer loans such as auto, personal and home loans are priced. Corporation Bank's tenor based MCLR, for all new rupee loans and advances including renewals, is revised with effect from June 15 2019, a BSE filing said. The six-month MCLR now stands at 8.80 per cent as compared to 8.85 per cent earlier. 

MCLR for other tenors has been kept unchanged. Banks have started to cut MCLR post RBI's move to slash repo rate by 25 basis points on June 6. Bank of Maharashtra, Oriental Bank of Commerce and IDBI Bank are among the early movers in passing on the rate cut benefits to customers.

Country's largest lender SBI too has cut the interest rate on cash credit (CC) and overdraft (OD) with limit above Rs 1 lakh with effect from July 1. The effective repo-linked lending rate (RLLR) for CC/OD customers will be 8 per cent, while for savings deposits above Rs 1 lakh the new rate would be 3 per cent, SBI had said.