Bank of Baroda reduces MCLR by 75 basis point

Mumbai: State-run Bank of Baroda today said it has reduced it marginal cost of funds based lending rate (MCLR) by up to 75 basis points across various tenors. The new rates would be effective from January 7 and will be applicable to all new and renewed borrowal accounts, the bank said in a statement here today.

The overnight MCLR has been reduced to 8.10 per cent from 8.80 per cent. One month MCLR has been set at 8.15 per cent while 3 month MCLR has been reduced to 8.20 per cent from 8.95 per cent earlier.

One year MCLR has been reduced by 70 basis points to 8.35 per cent from existing 9.05 per cent. Three year MCLR has been revised to 8.50 per cent from 9.05 per cent. Flush with higher deposits, banks have been reducing their MCLRs.

Country's largest lender State Bank of India has reduced its MCLR by 90 basis points or 0.9 per cent across various maturities.

Following SBI, many banks like HDFC Bank, Canara Bank, Union Bank, Kotak Mahindra Bank, among others have reduced their lending rates. Housing finance companies HDFC, Indiabulls Finance have also cut their home loan rates.