IDBI cuts rate
In its second interest rate cut in a month, IDBI has lowered its marginal cost of lending rate (MCLR) by up to 35 basis points with effect from February 1, 2017. MCLR is the new benchmark rate to which all floating rate loans are linked and is calculated based on a prescribed formula using cost of funds.The bank’s overnight lending rate now stands at 8.2%, while one-year loans will be charged an interest rate of 8.80%. The 3-year loans will be offered at a minimum rate of 8.95%.
“The reduction in MCLR is expected to positively impact loan growth; both in the retail consumer segment and corporate sector lending, thereby supporting the growth impulses in the economy,” the bank said in a statement.