IDBI Bank reduces MCLR by up to 0.35%; effective February 1

Mumbai: State-run IDBI Bank Monday said it has reduced its marginal cost of funds based lending rate (MCLR) by 30-35 basis points across various tenors, effective February 1.

For overnight tenor, the bank has reduced its minimum lending rate to 8.20 percent from 8.50 percent, it said in a statement here today.

For one month loan, the new lending rate has been set to 8.40 percent from 8.75 percent.

One year MCLR has been reduced to 8.80 percent from 9.15 percent

"The reduction in MCLR is expected to positively impact loan growth; both in the retail consumer segment and corporate sector lending, thereby supporting the growth impulses in the economy," the bank said.

This is the second reduction by the bank in the last two months.

Banks, in January, have reduced their minimum lending rates or MCLR after surge in deposits post the government's decision to demonetise old high value currency notes.