Canara Bank slashes MCLR by up to 30 bps across various tenors – ET RealEstate

NEW DELHI: State-owned Canara Bank on Thursday slashed its marginal cost of fund-based lending rate (MCLR) by up to 30 basis points across various tenors. The overnight and one-month lending rates have been cut by 20 basis points (bps) to 7 per cent each. The three-month MCLR has been revised to 7.15 per cent from 7.45 per cent, Canara Bank said in a regulatory filing.

The six-month MCLR has been cut to 7.40 per cent from 7.50 per cent, the bank said. The one-year MCLR has been revised to 7.45 per cent from 7.55 per cent earlier.

The revised lending rates will be effective from August 7, Canara Bank said.

The reduction in MCLR will bring down burden on borrowers.

The Reserve Bank of India (RBI) on Thursday kept the interest rates unchanged, but maintained an accommodative stance, implying more rate cuts in future if the need arises to support the economy hit by the COVID-19 crisis.

The benchmark repurchase (repo) rate has been left unchanged at 4 per cent, Governor Shaktikanta Das said while announcing the decisions taken by the central bank’s Monetary Policy Committee.

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Canara Bank, Bank of Maharashtra cut MCLR – ET RealEstate

MUMBAI: State-run Canara Bank and Bank of Maharashtra on Monday announced reduction in their marginal cost of funds based lending rates (MCLR) by 10 basis points and 20 basis points, respectively, across all tenors, effective July 7. 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) 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.

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