IDBI Bank Reduces Lending Rate

Mumbai: IDBI Bank on 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 state-run bank has reduced its minimum lending rate to 8.20 per cent from 8.50 per cent, it said in a statement here.

For a one-month loan, the new lending rate has been set to 8.40 per cent from 8.75 per cent.

One-year MCLR has been reduced to 8.80 per cent from 9.15 per cent

"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.