OBC cuts MCLR by 0.05% for select tenors

New Delhi: Public sector lender Oriental Bank of Commerce (OBC) on Friday slashed the marginal cost based lending rate (MCLR) by 0.05% for select maturities.

The Gurgaon-headquartered lender has cut the 1 month, 3 month and one year MCLR by 0.05% each to 8.15, 8.20% and 8.35%. The bank said the new MCLR rate will take effect from 11 December, OBC said in a statement.

The MCLR for overnight, and six-month lending have been kept unchanged at 8.10% and 8.30%. Banks review their MCLR rates on a monthly basis, which is relatively a new method of charging interest on advances.

Introduced in April 2016, the Reserve Bank of India (RBI) in August said it is going to review MCLR on the contention that banks were passing on lesser repo rate revision benefits to consumers.