New Delhi, July 10 (KNN) The marginal cost of funds-based leading rate (MCLR) has been cut by the state owned Oriental Bank of Commerce by up to 10 basis point (bps) for various tenors with effect from Thursday.

MCLR refers to the minimum interest rate of a bank  below which it cannot lend, except in some cases allowed by the RBI. It is an internal benchmark or reference rate for the bank.

Earlier, MCLR for overnight and one-month tenor was 8.30 per cent and 8.35 per cent but now the MCLR has been reduced to overnight and one-month loan tenor by 10 bps to 8.20 per cent and 8.25 per cent, respectively.

Earlier, MCLR for three-month, six-month and one-year tenor loans were at 8.50 per cent, 8.60 per cent and 8.70 per cent but now MCLR has been decreased by 5bps three-month, six-month and one year to 8.45 per cent, 8.55 per cent and 8.65 per cent respectively.

“This is to inform that the banks has revised MCLR for different tenors with effect from July 11," said the Bank in a regulatory filing on Wednesday.

Earlier this week, RBI Governor Shaktikanta Das said he expects faster transmission of the three successive repo-rate cuts totaling 75 basis points.

The State Bank of India had lowered its lending rates by 5 basis points across all tenors.

After the 25 bps repo-rate cut in the Monetary Policy review held in June, Bank of Maharashtra, corporation Bank and IDBI Bank has reduced their MCLR by 5-10 bps.

Majority of analyst expects another rate cut by the next meeting of the Monetary Policy Committee which is scheduled for August 5-9. (KNN/LM)