Money & Banking

Bank of India slashes External Benchmark Lending Rate by 75 basis points

Our Bureau Mumbai | Updated on March 29, 2020

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The bank also reduced its MCLR by up to 25 bps across tenors

Bank of India (BoI) has slashed its External Benchmark Lending Rate (EBLR), which is linked to the Repo rate, by 75 basis points (bps) to 7.25 per cent from 8 per cent.

The public sector bank (PSB) also reduced its benchmark Marginal Cost of Funds Lending Rate (MCLR) by up to 25 bps across tenors.

These lending rate cuts will be effective from April 1, 2020.

With the EBLR cut, BoI said it has passed on the benefit of the 75 basis points repo rate cut, announced by the Reserve Bank of India on 27th March, 2020, to its home, vehicle and MSME (micro, small and medium enterprise) customers.

Following the MCLR cut, the one-year benchmark MCLR will be at 7.95 per cent against 8.20 per cent now. The overnight MCLR will be at 7.25 per cent against 7.40 per cent now.

The bank's statement did not specify if deposit rates too were cut.

Published on March 29, 2020

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