The benchmark one-year MCLR has been cut by 10 bps to 8.60 per cent as against 8.70 per cent, earlier. The one-year tenor is the rate around which most of the consumer loans such as home, car and personal are set against.
The one- and two-month MCLRs will attract new rate of 8.30 per cent and 8.40 per cent, respectively, down 5 bps each from the earlier rates.
While for overnight and six-month tenor, the MCLR will be down to 8.20 per cent and 8.55 per cent, respectively, a reduction of 10 bps each.
Earlier last month, other PSBs such as Bank of Maharashtra, Oriental Bank of Commerce and Corporation Bank had announced to cut MCLR after the RBI had announced its bi-monthly monetary policy review.
The country's largest lender SBI had cut the interest rate on cash credit and overdraft with a limit of above ₹1 lakh with effect from July 1.