New Delhi: State-owned Oriental Bank of Commerce (OBC) has cut the marginal cost of funds-based lending rate (MCLR) by up to 10 basis points (bps) for various tenors with effect from Thursday. MCLR for overnight and one-month loan tenor has been reduced by 10 bps to 8.20 per cent and 8.25 per cent, respectively. Earlier, MCLR for overnight and one-month tenor was 8.30 per cent and 8.35 per cent, respectively.
Similarly, for three-month, six-month and one-year tenor loans, MCLR has been decreased by 5 bps to 8.45 per cent, 8.55 per cent and 8.65 per cent, respectively. Earlier, MCLR for three-month, six-month and one-year tenor loans were at 8.50 per cent, 8.60 per cent and 8.70 per cent, respectively. "This is to inform that the bank has revised MCLR for different tenors with effect from July 11," the bank said in a regulatory filing on Wednesday.
Earlier this week, RBI Governor Shaktikanta Das said he expects faster transmission of the three successive repo rate cuts totalling 75 basis points. On Tuesday, the State Bank of India had lowered its lending rates by 5 basis points across all tenors. After the 25 bps repo rate cut in the Monetary Policy review held in June, Bank of Maharashtra, Corporation Bank and IDBI Bank had reduced their MCLR by 5-10 bps.
The next meeting of the monetary policy committee is scheduled for August 5-9, when majority of analysts expect another rate cut. Banks review MCLR every month.