Country’s two major state-run banks i.e. Canara Bank and Bank of Maharashtra (BoM) cut their marginal cost of funds based lending rates (MCLR) by 10 basis points and 20 basis points, respectively, across all tenors. These rates will be effective from July 7, i.e., today.
Bengaluru-based Canara Bank has cut its one-year MCLR to 7.55 per cent from 7.65 per cent earlier.
Overnight and one-month lending rates have been cut by 10 basis points to 7.20 per cent each. Three months MCLR rate has been revised to 7.45 per cent from 7.55 per cent, Canara Bank said in a release.
Pune-headquartered Bank of Maharashtra (BoM) in a BSE filing said, “in terms of RBI guidelines, Bank had reviewed its lending rates and decided to reduce Marginal Cost of Funds based Lending Rate (MCLR) w.e.f. 07.07.2020.”
The bank has reduced one-year MCLR to 7.50 per cent from 7.70 per cent.
Its overnight, one-month and three months MCLR have been cut to 7 per cent (from 7.20 per cent), 7.10 per cent (from 7.30 per cent) and 7.20 per cent (from 7.40 per cent), respectively.
BoM has revised downwards its six months MCLR to 7.30 per cent from 7.50 per cent.
“The reduction in our MCLR is aimed to support economic growth and industrial development,” BoM said in a release.
The lender has slashed MCLR for the fourth consecutive month.