Two PSU banks cut lending rate by up to 0.15%-:- Equity Research

Two public sector lenders including Oriental Bank of Commerce (OBC) today reduced lending rate by up to 0.15 percent across various maturities a few days after 0.25 percent repo rate cut by RBI. The OBC has reduced marginal cost of funds based lending rate (MCLR) by up to 0.15 percent, OBC said in a statement. Also, the 6 months lending rate has been reduced by 0.10 percent to 9.30 percent, it said. The new rates would be effective from October 10, it added. Another lender, United Bank of India, has reduced MCLR rate by 0.05 percent across all tenures with effect from October 17. Now one-year tenure loan would be available at 9.40 percent as against 9.45 percent, it said. At the same time, 6 month loans would be cheaper at 9.35 percent as compared to 9.40 percent, it added. On Tuesday, RBI lowered the repo rate or the rate at which it lends to banks by 0.25 percent. The 6-member Monetary Policy Committee, which has three members nominated by the government and the rest from the Reserve Bank, lowered repo rate to 6.25 percent from 6.50 percent.