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Union Bank of India cuts MCLR by up to 10 bps across tenors

After the cut, Union Bank of India's one year MCLR now stands at 8.2 percent, down from 8.25 percent. According to a press release issued by the bank, the new rates will be effective from 11 December, 2019.

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Updated: Dec 11, 2019, 11.59 AM IST
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Just a week after the Reserve Bank of India (RBI) maintained status quo on key rates in its bi-monthly monetary policy review, a slew of banks have announced reduction in loan rates. Tuesday evening, Union Bank of India announced that it has cut marginal cost of funds-based lending rates (MCLR) by 5-10 basis points (bps) across all tenors. After the cut, Union Bank of India's one year MCLR now stands at 8.2 percent, down from 8.25 percent. According to a press release issued by the bank, the new rates will be effective from 11 December, 2019.

Union Bank of India's MCLR with effect from 11 December, 2019
Tenor MCLR (%)
Overnight MCLR 7.75
1-month MCLR 7.80
3-month MCLR 7.95
6-month MCLR 8.05
1-year MCLR 8.20
Source: Company website

Since the start of the week, many banks have announced reduction in MCLR. Monday saw the country's largest public sector lender, State Bank of India cut its one-year MCLR by 10 basis points, and the largest private sector bank, HDFC Bank reduce MCLR across tenors by up to 15 bps. Bank of India, too cut its MCLR. Tuesday, Bank of Baroda and UCO Bank announced interest rate cuts on loans.

Also Read

Bank of Maharashtra cuts MCLR by up to 45 bps

Indian Bank to revise MCLR from January 3

Allahabad Bank cuts MCLR by 5 bps

HDFC Bank cuts MCLR by up to 15 bps

SBI reduces one-year MCLR by 10 bps

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