Money & Banking

Repo-linked rates, MCLR cut by PSBs

Our Bureau Mumbai | Updated on October 10, 2019 Published on October 10, 2019

In view of the ample liquidity and ongoing festival season, public sector banks have started cutting repo rate-linked lending rates and marginal cost of funds-based lending rates. Central Bank of India said on Thursday that it has reduced repo-based lending rate (RBLR) by 25 basis points with effect from October 10. One basis point equals one-hundredth of a percentage point.

Accordingly, interest rate on housing loans (low-risk category) stands reduced from 8.25 per cent to 8 per cent and for micro and small enterprise (MSE) loans it stands reduced to 8.95-9.50 per cent from 9.20-9.75 per cent.

Bank of India has reduced its overnight marginal cost of funds-based lending rate (MCLR) by 15 bps to 7.95 per cent and one-year MCLR by 5 bps to 8.30 per cent with effect from October 10. “This reduction transmits the change made in RBI policy rate (repo rate) on October 4,” the bank said in a statement.

Indian Overseas Bank has reduced the interest rate for the retail segment (housing, vehicle, education and clean loans) and micro and small enterprises (MSEs) by 25 bps, revising the repo-linked lending rate (RLLR) to 8 per cent from 8.25 per cent with effect from November 1.

SBI has reduced its MCLR by 10 bps across all tenors with effect from October 10.

Published on October 10, 2019
public sector banks
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