Oriental Bank lowers MCLR by up to 20 bps for various tenors

State-owned Oriental Bank of Commerce (OBC) has cut marginal cost based lending rates (MCLR) by up to 0.20 percentage points for maturities in range of one year.

"The bank has revised MCLR for different tenors with effect from June 12," the bank said in a regulatory filing.

For overnight tenor, the new MCLR is down by 15 bps or 0.15 percentage point to 8.10 per cent; while that for one month loan has been cut by 10 basis points to 8.20 per cent.

Among other tenors, the new MCLR for three month and six month loan have been cut by 20 basis points each at 8.25 per cent and 8.35 per cent respectively.

And that for one tenor, the MCLR is reduced by 10 basis points to 8.50 per cent.

Banks review their MCLR rates on a monthly basis which is an improved method of calculating loan rates than the base rate as it takes into account the riskiness of an individual to decide on the interest.

Another state-owned lender Indian Overseas Bank said it has cut base rate to 9.45 per cent from existing of 9.50 per cent effective from July 1, 2017.

(This article has not been edited by DNA's editorial team and is auto-generated from an agency feed.)