The country's largest lender State Bank of India (SBI) on Wednesday said it has reduced its marginal cost of funds-based lending rate (MCLR) by 5-10 basis points (bps) for shorter tenures, effective July 10.
The reduction in MCLR for shorter tenor -- up to three months -- is aimed at boosting credit offtake and revive demand, according to a statement by SBI.
With this revision, the bank's MCLR of up to three months' tenor has come down to 6.65 per cent per annum, which is at par with its external benchmark-based lending rate (EBLR).
This is the 14th consecutive reduction in the bank's MCLR, which continues to be the lowest in the market.
Meanwhile, another state-owned lender Indian Overseas Bank (IOB) on Wednesday also announced reduction in its MCLR by up to 25 basis points across all tenors, effective July 10.
The bank has revised downward its one-year MCLR by 20 bps to 7.75 per cent from 7.95 per cent, according to a regulatory filing.
The new six-month MCLR of IOB will stand at 7.65 per cent, against 7.90 per cent.
Canara Bank and Bank of Maharashtra (BoM) had reduced their MCLRs by 10 bps and 20 bps, respectively, across all tenors from Tuesday.
