MUMBAI: Mid-sized state-run Indian Overseas Bank Tuesday reduced its lending rate by a marginal 5 bps on loan tenors of one-year and above, effective Wednesday. The lender has cut the marginal cost of funds-based lending rate (MCLR) for one-year loans to 8.65 percent. Indian Overseas Bank is the second state-run lender to reduce MCLR following a second consecutive 25 bps cut in the repo rate by the Reserve Bank last week. In a 4:2 majority vote, the central bank had cut the repo rate to 6 percent citing the need to support growth which has been wavering of later. In the February policy also the central bank had effected a similar quantum of reduction in the benchmark rates.

Source: Mint April 09, 2019 12:11 UTC