Union Bank to cut MCLR by 10 bps from Saturday, BoB to slash 1-month rate by 5 bps

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State-run Union Bank of India (UBI) on Friday said it will cut the marginal cost of funds based lending rate (MCLR) by 0.10 percentage points across tenors from Saturday. The bank has reduced the MCLR by 10 basis points across all tenors with effect from January 11, 2020, Union Bank of India said in a release.

The benchmark one-year MCLR, which is a gauge for pricing of auto, personal and home loans, stands at 8.10 per cent.

UBI said this is the seventh consecutive rate cut announced by the lender since July 2019.

"Thus, cumulative rate cut is in the range of 60bps -75bps (0.60-0.75 per cent) across different tenors, since February 2019," it added.

Meanwhile, Bank of Baroda in a regulatory filing said that it will revise one month MCLR to 7.60 per cent from 7.65 per cent, with effect from Sunday. All other tenor loans will remain unchanged, Bank of Baroda said.

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