Bank of Baroda, United Bank join MCLR cut bandwagon

State-owned lenders Bank of Baroda and United Bank of India on Thursday reduced their marginal cost of funds-based lending rates (MCLRs). While BoB reduced it by 55-75 basis points across tenures, United Bank cut the rate by up to 90 basis points across tenures.

BoB’s one-year MCLR now stands at 8.35%, 70 bps lower than earlier. The overnight, one-month, three-month and six-month MCLRs have also been revised to 8.10%, 8.15%, 8.20%, 8.30%, respectively.

“With the revision of MCLR as above, the offered rate of interest on loan product will be lower by 55 BPS to 75 BPS across all the tenures. The effective MCLR has come down by 75 bps to 95 bps for various tenures during last two months,” a spokesperson of the bank was quoted as saying in a statement.

“The Asset Liability Management Committee of the bank at its meeting held on January 4 has revised downward the MCLR with effect from January 6,” United Bank said in a BSE filing on Thursday. The bank has decided to slash MCLR by 60-90 basis points across tenures. The rate for one-year tenure has been reduced by 60 basis points to 8.8%, the Kolkata-based lender said.

Bank Of Baroda