IDBI Bank reduces MCLR for various tenors; effective from January 1

State-run IDBI Bank on Friday said it has reduced its marginal cost of funds based lending rate (MCLR) for various tenors, effective from January 1.

For overnight tenor, the bank has reduced its minimum lending rate to 8.50%.

For one month loan, the new lending rate has been reduced to 8.75%.

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For one year loan the new lending rate is 9.15% while for three year the revised rates are 9.30%. 

"The reduction in MCLR is expected to positively impact loan growth both in the retail consumer segment, corporate sector lending, thereby supporting the growth impulses in the economy," the bank said in a statement on Friday.

It has reduced MCLR by 30 basis points to 60 basis points across various tenors since April 2016.

The lender has reduced base rate from 9.65% to 9.50% while benchmark prime lending rate (BPLR) has also been revised from 14.15% to 14%. 

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