Which bank has recently cut its marginal cost of funds-based lending rate (MCLR) by 0.05 per cent

2016

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Kotak Mahindra Bank
B	ICICI Bank
C	Axis Bank
D	Federal Bank

Explanation:

Detailed explanation-1: -State-owned Bank of Baroda on Wednesday announced reduction in the marginal cost of funds based lending rate by 0.05 per cent across all tenors.

Detailed explanation-2: -Marginal Cost of Funds based Lending Rate (MCLR) is the minimum lending rate below which a bank is not permitted to lend. MCLR replaced the earlier base rate system to determine the lending rates for commercial banks. RBI implemented MCLR on 1 April 2016 to determine rates of interests for loans.

Detailed explanation-3: -According to the bank’s official website, the new MCLRs will go into effect on December 22, 2022. IndusInd Bank is now offering an overnight MCLR of 8.80%, 1 month MCLR of 8.85%, 3 month MCLR of 9.20%, 6 month MCLR of 9.60%, 1 year MCLR of 9.95%, 2 year and 3 years MCLR of 10.15%.

Detailed explanation-4: -Notably, SBI is currently offering a certain discount on home loans as part of its festive offer campaign, which is set to end on January 31, 2023. According to SBI’s website, the 1-year MCLR has been raised to 8.4% from 8.30% as of January 15. Other tenures’ MCLR has remained unchanged.

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