On Monday, ICICI Bank, Central Bank of India and PNB after the RBI's repo rate cut last month reduced their MCLR rate across tenures.

The internal benchmark or MCLR has been cut by 10 bps to 8.65% for one year tenure by ICICI Bank. For shorter tenures i.e. for overnight and one month lending rate is 8.40% while 6-month and 3-month stands at 8.60% and 8.45%, respectively. The new rates will come into effect immediately.

PNB and Central Bank of India has also revised the MCLR rate lower by 5 bps across tenure. Now, the one-year MCLR of these public-sector lenders stands at 8.40% and 8.50%, respectively.

1-year MCLR for SBI, HDFC Bank and BOB are 8.45%, 8.7% and 8.7%, respectively.

"Interest rates on lower-tenor money market instruments remain broadly aligned with the overnight WACR (weighted average call rate), reflecting near-full transmission of the reduction in policy rates," Das, RBI governor said at the post-policy press conference. Also stating that the yield on the benchmark 10-year government bond has declined by about 40 bps from its average in April 2019 to about 7%.

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