 "United Bank of India cuts MCLR by 5 basis points, effective Thursday")
State-owned United Bank of India has reduced its MCLRs by 5 basis points across tenures, effective Thursday.
The bank's asset-liability management committee in its meeting on Tuesday revised tenure-based MCLRs of the bank to be effective from Thursday, it said in a regulatory filing.
One-year marginal cost of funds-based lending rate (MCLR) has been reduced to 8.80 per cent from 8.85 per cent.
The one-year MCLR is the benchmark against which most of the consumer lending, such as auto, personal and home loans, are priced.
Among others, the six-month and three-month MCLRs have been cut to 8.60 per cent and 8.50 per cent, respectively.
Likewise, the one-month and overnight MCLR rates are reduced by five basis points (bps) each, the bank said.
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One basis point is equal to one-hundredth part of a percentage.
The banks review their MCLRs every month.