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Tag: MCLR

Indian Overseas Bank cuts MCLR by up to 10 bps

Indian Overseas Bank cuts MCLR by up to 10 bps

Finance
NEW DELHI: State-owned Indian Overseas Bank said it has reduced the MCLR across all tenors, except overnight and one month, with effect from Sunday. The new MCLR rates come to effect from March 10, 2019, the bank said in a regulatory filing. The one-year tenor marginal cost based lending rate (MCLR) has been brought down by 0.10 percentage point to 8.70 per cent, the bank said. The one-year MCLR is the benchmark against which most of the consumer loans are priced by a lender. Among others, two- and three-year MCLRs are reduced by 0.10 percentage point each to 8.80 per cent and 8.90 per cent, respectively. The six-month MCLR will be priced at 8.50 per cent as against 8.60 per cent earlier while for three-month tenor it has been cut to 8.45 per cent from 8.50 per cent. Let's block ads! (Why...
Allahabad Bank cuts MCLR by 10 bps with effect from March 1

Allahabad Bank cuts MCLR by 10 bps with effect from March 1

Finance
Kolkata: State-owned Allahabad Bank has taken the lead in lowering lending rates, following Reserve Bank of India's appeal last week for softer rates after after its 25 basis points repo rate cut failed to achieve monetary transmission. Governor Shaktikanta Das nudged country's top bankers to lower lending rates at a meeting last week convened for the purpose. Allahabad Bank, which exited the prompt correction action-based restrictions Monday, has reduced its marginal cost-based lending rate by 10 basis points across maturities effective March 1. "As a result, home, car loans and other retail loans are slated to get cheaper," the bank said Tuesday. One basis point is equal to one hundredth of one percent. ET in its edition dated February 23 has reported the possibility of token rate cuts....
Indian Overseas Bank raises MCLR by 0.05 per cent for various maturities

Indian Overseas Bank raises MCLR by 0.05 per cent for various maturities

Finance
NEW DELHI: Indian Overseas Bank (IOB) has raised its marginal cost of funds based lending rate (MCLR) by 0.05 per cent for various maturities with effect from Monday. "Our bank has increased the MCLR by 0.05 per cent across all tenors except overnight tenor with effect from September 10, 2018," it said in a regulatory filing Friday. The one-year MCLR, the rate on which most of retail loans are benchmarked, has been increased to 8.70 per cent, as against 8.65 per cent currently. Two year and three year MCLRs are raised by 0.05 per cent each at 8.80 per cent and 8.90 per cent, respectively. For one-three-six month tenors, the new rates will be up by 0.05 per cent each at 8.20 per cent, 8.40 per cent and 8.50 per cent. The overnight MCLR is kept unchanged at 8.05 per cent. The hike in MCLR ra...
Andhra Bank raises MCLR by 0.05% for various tenors

Andhra Bank raises MCLR by 0.05% for various tenors

Finance
New Delhi: State-owned Andhra Bank has increased the marginal cost of funds based lending rate (MCLR) by 0.05 per cent to up to 8.55 per cent for various tenors. "This is to inform that the bank has increased its MCLR with effect from June 15, 2018," Andhra Bank said in a BSE filing. The MCLR for overnight, 1 month, 3 month, 6 month and one year tenors has been raised by 0.05 per cent each to 8 per cent, 8.05 per cent, 8.25 per cent, 8.40 per cent and 8.55 per cent, respectively, the bank said. The move will make consumer loans such as auto, car and home loans costlier for buyers. The RBI had earlier this month increased the key lending rate by 0.25 per cent to 6.25 per cent. Following this, a number of banks have hiked the interest rate. However, big players such as SBI, ICICI Bank and HD...
RBI to link bank's base rate to MCLR from Apr 1 for loans, borrowers on base rate may benefit

RBI to link bank's base rate to MCLR from Apr 1 for loans, borrowers on base rate may benefit

Finance
The Reserve Bank will link the base rate for loans given by banks to the MCLR starting April 1, 2018 i.e. from the new financial year. The Marginal Cost of Funds based Lending Rates (MCLR) system was introduced on April 1, 2016 to tackle the problems of the Base Rate regime. With the introduction of the MCLR system, it was expected that the existing Base Rate linked loans and other credit exposures would also migrate to MCLR system. However, this has not happened. "It is observed, however, that a large proportion of bank loans continue to be linked to the Base Rate despite the Reserve Bank highlighting this concern in earlier monetary policy statements. Since MCLR is more sensitive to policy rate signals, it has been decided to harmonize the methodology of determining benchmark rates...