In line with the latest repo rate cut of 35 basis points in the RBI's August MPC meet, Axis Bank today has announced a cut in its MCLR rate across all tenures. The new rates will come into force from August 17, 2019. The private sector lender's one-year MCLR now stands reduced to 8.55% against the previous 8.65%, a cut of 10 basis points. One basis point is one-hundredth of a percentage point.
Axis Bank's revised MCLR rates with effect from August 17:
|Tenure MCLR rate|
|One month 8.20%|
|3 months 8.40%|
|6 months 8.50%|
|1 year 8.55%|
|2 year 8.65%|
|3 year 8.70%|
Other banks that have cut lending rates post RBI's latest repo rate cut
For better transmission of key policy rates to borrowers, banks both from the public and private space have been reducing their interest rates on loan. Within hours of RBI's repo rate cut announcement on August 7, SBI slashed the MCLR by 15 bps across tenures. The move was followed by IDBI Bank and Oriental Bank of Commerce that cut MCLR rate by 5-10 bps. Other banks which have also cut their MCLRs include UCO Bank, Allahabad Bank, Canara Bank and Central Bank of India.
Notably, Bank of Baroda slashed MCLR by 15 bps below the policy announcement on August 5.