Categories: Business

uco bank cuts MCLR, IOB cuts base rate

Photo: PTI

Uco Bank

new Delhi. Today, two public sector banks have lowered their lending rates. UCO Bank has cut the Marginal cost of funds based lending rate –MCLR by 0.10 percent for all term loans. UCO Bank said on Friday that the revised loan rates will be effective from August 10. This will make the bank's MCLR linked loan cheaper. The bank said that the one-year MCLR will now come down to 7.40 percent. Right now it is 7.50 percent. Similarly, the three month and six month MCLR has also been reduced to 7.05 percent and 7.30 percent respectively.

The public sector Indian Overseas Bank (IOB) has reduced its base rate by 0.10 percent to 9.35 percent. "The bank's Asset Liability Management Committee has decided to reduce the base rate from 9.45 percent to 9.35 percent," the IOB said in a notice to the stock market on Friday. The new rate will come into effect from August 10, 2020. "The base rate is the minimum interest rate, below which the bank cannot lend to customers." Bringing down the base rate means the bank can now lend based on the lower level of rates.

During the last one month, many banks have cut their MCLR. This includes SBI, HDFC Bank and Union Bank. In the second week of July last month, State Bank of India cut MCLR by 5 to 10 basis points for a short period. Along with this, HDFC Bank had reduced the MCLR by 20 basis points. MCLR declined to 7.45 per cent for one year after the cut. At the same time, Union Bank also cut MCLR by 20 basis points last month.

This post was published on August 7, 2020 7:43 pm

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