Oriental Bank of Commerce cuts MCLR by 0.05% for select tenors

New Delhi: Public sector lender Oriental Bank of Commerce (OBC) has slashed the marginal cost based lending rate (MCLR) by 0.05 percent for select maturities.

The Gurugram headquartered lender has cut the 6-months and one year MCLR by 0.05 percent each to 8.30 percent and 8.40 percent, respectively.

The bank said the change of MCLR will come into effect from September 11.

The MCLR for overnight, one-month and three-month lending have been kept unchanged at 8.10 percent, 8.20 percent and 8.25 percent, respectively, the bank said in a regulatory filing.

Banks review their MCLR rates on a monthly basis, which is relatively a new method of charging interest on advances.

Introduced in April 2016, the Reserve Bank in August said it is going to review MCLR on the contention that banks were passing on lesser repo rate revision benefits to consumers.

Shares of Oriental Bank of Commerce closed 2.16 percent down at Rs 124.50 on BSE.