Bringing a sigh of relief for borrowers, Bank of Baroda and HDFC Bank have cut their marginal cost-based lending rates (MCLR) up to 5 and 10 basis points across different loan tenures. According to Financial Express, HDFC Bank has reduced its MCLR by 5% for loan tenures of 2 years and 3 years. For the loan tenure of 2 years, the MCLR has been reduced to Rs.8.85% and for the 3-year tenure, the MCLR has been reduced to 9%. The reduction of the MCLR by HDFC Bank comes after it hiked its lending rates by 5 basis points in Dember 2018 and in January 2019. The decision to reduce the MCLR was following their improvement in advances, as it grew by an overall amount of 23.8% in December 2018 against the same month of the previous year. As of December 2018, the advances of HDFC Bank amounted to Rs.7.8 lakh crore.
Along with HDFC Bank, Bank of Baroda also brought some relief for its borrowers by reducing its MCLR by 10 basis points. The MCLR reduction will be effective as of 7 March 2019, for the overnight, 1 month, 3 months, 6 months and 1-year loan tenures. For the overnight advances, the MCLR will be reduced to 8.25%, 8.30% for the one-month tenure, 8.40% for the 3-month tenure, 8.60% for the 6-month tenure and 8.65% for the 1-year tenure.
Source: Financial Express