In a stock exchange filing on Monday, state-owned Allahabad Bank announced a reduction in its benchmark lending rate by 0.05 percent across various tenors.

The marginal cost of funds-based lending rate or MCLR for one-year has been reduced to 8.60 percent from the earlier 8.65 percent. Most retail loans like home or education loans are based on the one-year MCLR.

The revised rates will be effective from 14 May 2019, the bank said.

In its announcement under regulation 30 (LODR) with regard to SEBI regulations for interest rate revisions, Allahabad Bank said, "we wish to inform you that the Asset Liability Management Committee (ALCO) of the Bank has reviewed the existing Marginal Cost of Funds Based Lending Rates (MCLRs) and decided for a downward revision of MCLR by 05 basis points (bps) across different tenors."