After SBI, Allahabad Bank cuts MCLR; Home loans to get cheaper

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State-owned Allahabad Bank on Friday reduced the marginal cost of funds-based lending rate (MCLR) by 5 basis points, with effect from Monday.

The bank's asset-liability management committee has reviewed the existing MCLRs and decided for a downward revision of MCLRs by 5 bps across different tenors, it said in a regulatory filing.

The benchmark one-year MCLR, against which most of the consumer loans are priced, will now stand at 8.35 per cent from the earlier rate of 8.40 per cent.

Other tenor loans, ranging from overnight to six months, have been cut by same quantum standing between 7.85-8.20 per cent.

The revised rates will be effective from October 14 (Monday), the bank said.

Shares of Allahabad Bank fell 2.26 per cent to Rs 25.95 apiece on the BSE.

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