Mumbai: State-run IDBI Bank on Friday said it has reduced its marginal cost of funds based lending rate (MCLR) for various tenors, effective from January 1.
For overnight tenor, the bank has reduced its minimum lending rate to 8.50 per cent.
For one month loan, the new lending rate has been reduced to 8.75 per cent.
For one year loan the new lending rate is 9.15 per cent while for three year the revised rates are 9.30 per cent.
"The reduction in MCLR is expected to positively impact loan growth both in the retail consumer segment, corporate sector lending, thereby supporting the growth impulses in the economy," the bank said in a statement here today.
It has reduced MCLR by 30 basis points to 60 basis points across various tenors since April 2016.
The lender has reduced base rate from 9.65 per cent to 9.50 per cent while BPLR has also been revised from 14.15 per cent to 14 per cent.