Private sector Axis Bank today announced to cut the MCLR by 0.1-0.15 per cent across tenors with effect from tomorrow.
"The bank has reviewed and decided to reduce the MCLRs of the Bank by 10 basis points (0.1 per cent) in the overnight tenor and by 15 bps (0.15 per cent) across all other tenors," Axis Bank said in a regulatory filing.
The bank said the cut in Marginal Cost of Lending Rate (MCLR) will be effective from December 17.
The new loans will be charged at MCLRs ranging from 8.55 per cent to 9 per cent.
For overnight and one month tenor, MCLR has come down to 8.55 per cent; three month 8.75 per cent; six month 8.85 per cent and that for one year the lending rate will be 8.90 per cent.
For two year and three year loan periods, the loans will be charged at 8.95 and 9 per cent, respectively.
MCLR-based lending rate came to effect from June this year, replacing the base rate based calculation.
RBI introduced it with the objective of expediting monetary policy transmission along with augmenting uniformity and transparency in the calculation methodology of lending rates. These rates are revised every month.
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