Indian Bank, Bank Of Baroda, Union Bank Reduce Lending Rates

New Delhi: Indian Bank has slashed its benchmark one year tenor marginal cost of funds based lending rate (MCLR) by 15 basis points. The new rate will be 8.10 percent.

For tenors ranging from overnight to 6 months, the MCLR has been cut in the range of 5 to 10 basis points, the bank said in regulatory filing.

Indian Bank has also slashed its base rate to 9.15 percent from 9.45 percent earlier. 

The benchmark prime lending rate (BPLR) has been slashed to 13.40 percent from14.20 percent earlier. The floating rate loans to medium enterprises will be linked to external benchmark rate (policy repo rate) with effect from 1 April, 2020.

The new rates will be applicable for the merged entity. Indian Bank will be merged with Allahabad Bank as the mega banks' merger will be brought into effect tomorrow.

Bank of Baroda has also slashed interest rates for personal, retail and micro, small and medium enterprises loans by 75 basis points to 7.25 percent. This will be effective from March 28 itself, the bank said in a statement.

Union Bank of India has also slashed its lending rates linked to external benchmark by 0.75 percentage to 7.20 percent.

This rate will be applicable for all floating rate personal or retail loans. This rate will also be applicable to micro, small and medium enterprises, the bank said in a statement.

The new rates will be applicable for customers of Corporation Bank and Andhra Bank that will be merged with Union Bank of India from tomorrow.