Central Bank of India cuts MCLR across all tenors
The reduction in rates will be effective from August 15, 2019.
Further the bank stated in its press release that it will come out with repo linked retail products. Pallav Mohapatra, MD & CEO said “the bank will come out with new products in the retail segments having repo linked interest rate, i.e., RLIR, during September 2019.”
Here is a look at the bank's MCLR with effect from August 15.
||MCLR as on July 15, 2019
||MCLR from August 15, 2019
Banks that have cut MCLR
The country's largest lender, State Bank of India (SBI) was the first to announce a 15 bps reduction in MCLR across all tenors within hours of RBI's policy announcement on August 7. IDBI Bank and Oriental Bank of Commerce lowered their rates by 5-10 bps while Bank of Baroda had announced a cut in MCLR by 15 bps on August 5. UCO Bank, Allahabad Bank and Canara Bank have also cut their MCLRs.
Banks that have announced repo linked products
SBI was also the first bank to announce that it will link its retail products to the repo rate back in May. Last week, Syndicate Bank said it has decided to link is deposits and loans to the repo rate for a wide range of products, its larger peers Bank of India, Union Bank and Allahabad Bank also said they are working on the modalities to launch similar products.