Canara Bank cuts MCLR rate by 10 bps across all tenors

New Delhi: State-owned Canara Bank has announced slashing the marginal cost of funds-based lending rate (MCLR) by 10 basis points (0.10 percentage points) across most tenors, making loans linked to the benchmark cheaper.

PSU Watch is now on Whatsapp Channels. Click here to join

The benchmark one-year tenor MCLR, which is used to price most consumer loans like auto and personal, will be at 9 per cent against the existing rate of 9.10 percent, Canara Bank said in a regulatory filing on Friday.

Among others, the rate of one-month, three-month, and six-month tenors will be in the range of 8.25-8.80 percent. The MCLR on overnight tenor will be 8.20 percent against 8.30 percent.

The new Marginal Cost of Funds Based Lending Rate (MCLR) of the bank with effect from May 12, it said.

It is to be noted that the Reserve Bank of India (RBI) last month slashed its benchmark lending rate by 25 basis points to 6 per cent. This reduction marks the second consecutive rate cut this year.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)