Mumbai: Following its larger rivals, LIC-owned IDBI Bank has reduced its lending rates by 5 basis points for most of the tenors, effective Friday.
The new one-year marginal cost of funds-based lending rate (MCLR), to which most of the loan pricing is based on, has been reduced to 9%, the bank said in a statement on Thursday.
The revised six month and two-year MCLR now stand at 8.60% and 9.25%, respectively.
The bank has reduced its one-month lending rate by 10 basis points to 8.15%.
On Tuesday, the country's largest lender State Bank had lowered its lending rate by 5 basis points across all tenors. Its new one-year MCLR now stands at 8.50%.
Other state-run lenders — Indian Overseas Bank and Bank of Maharashtra have also reduced their lending rates by 5 basis points.
Banks have started reducing MCLR following a 25 basis point repo rate cut by the Reserve Bank in its first bi- monthly monetary policy review announced on 4 April.