Bank of India cuts one-year MCLR rates by up to 20 basis points

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State-run Bank of India on Monday revised its one-year MCLR-based lending rates by up to 20 basis points across various tenors, effective Tuesday. The move comes hours after the larger peer State Bank of India announced 10 bps reduction to 9.90 percent in its one-year MCLR or marginal cost-based lending rates-based loan pricing.

This makes the SBI rates the cheapest and this is the eighth consecutive lending rate reduction by the largest lender since the beginning of the fiscal.

The city-based lender has reduced its MCLR for overnight rates by 20 bps while for other tenors the cut is 10 basis points, a bank statement said, adding the overnight rates will stand at 7.75 percent.

The new one-year MCLR is fixed at 8.20 percent as against 8.30 percent.