Bengaluru, Aug 9 : Public sector Canara Bank, in an attempt to pass on the benefit of reduction in interest rates effected by the Reserve Bank of India (RBI) this week, has reduced its marginal cost of fund-based lending rate (MCLR) by 10 basis points across all tenors, with effect from August 7. With this revision, Canara Bank has cumulatively reduced its MCLR by 20 bps during the last six months and thus one-year MCLR has come down to 8.5 per cent from 8.7 earlier, according to a statement here on Friday.
The new tenor-linked MCLRs are: Overnight 8.25 per cent, one month 8.3, three-month 8.35, six-month 8.5 and one-year 8.5. Canara Bank will be announcing further reduction in leding rates soon to pass on the benefits of the recent reduction in repo rate announced by the RBI. Canara bank will be rolling out repo rate-linked loan products shortly, to transmit further the effect of reduction of interest rates by the RBI.UNI