Tuesday, July 27

United Bank of India cuts MCLR by five basis points

Kolkata: State-owned United Bank of India (UBI) has announced reduction in its marginal cost based lending rate (MCLR) by five basis points from December 16, following leaders in the banking industry.

Allahabad Bank, another state-owned Kolkata-headquartered lender, has lowered MCLR by similar extent while its new rates will come into effect from Saturday. One basis point is 0.01 percentage point.

State Bank of India was first to announce 10 bps cut in MCLR last week after Reserve Bank of India Governor Shaktikanta Das exuded confidence that previous policy rate cuts would translate into banks lowering lending rates even as the central bank kept repo rate unchanged in the last monetary policy.

UBI said its one-year MCLR is lowered to 8.40% while six-month MCLR would be 8.30%. Allahabad Bank’s six-month MCLR will be 8.15% and one-year MCLR 8.30%. SBI’s one-year MCLR is at 7.90% from December 10.

Before this round of rate reduction, the one-year median MCLR dipped 49 bps since February while RBI cut repo rate by 135 basis points cumulative in the same period.

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