Corporation Bank cuts overnight MCLR by 0.1%

New Delhi: Public sector lender Corporation Bank on Friday said it has reduced its marginal cost of funds based lending rate (MCLR) by 0.1 percentage point for overnight loan maturities.

The bank has cut the overnight MCLR by 0.1 percent to 7.80 percent.

The tenor-based MCLR, for all new rupee loans and advances including renewals, is to come into effect from December 15, the bank said in a regulatory filing.

For the rest of the tenors, the bank has kept the MCLR unchanged.

At present, Corporation Bank's MCLR for one-month and three-month loan maturities stands at 7.90 percent and 8.20 percent, respectively.

For six-month and one-year maturities, Corporation Bank's MCLR is at 8.60 percent and 8.65 percent, respectively.

The MCLR mechanism was introduced in the banking system in April 2016 as an alternative to the base rate, below which banks cannot lend, for new borrowers.

MCLR is calculated on the marginal cost of borrowing and return on net worth for banks.