The new one-year MCLR has been set at 8.20 per cent as against 8.40 per cent earlier, Union Bank said in a statement.
The nation's largest lender, State Bank had on July 31 slashed the pricing for under Rs 1 crore saving deposits by 0.50 per cent to 3.5 per cent.
Speaking to CNBC-TV18, Chanda Kochhar, Managing Director and Chief Executive Officer of ICICI Bank, said a large part of the lending rates cut had already happened.
The country needs to see higher consumption and creation of new capacities, Keki Mistry, HDFC‘s Vice-chairman and Chief Executive Officer said, adding that subsidies in housing sector will likely kickstart economy.
Asserting that there is more scope for banks to lower the lending rates, the Reserve Bank today virtually put the ball in the government's court to ensure better transmission of policy rate reductions by fast-tracking bank recapitalisation and NPA resolution.
Hinting at the fact that another lending rate cut may not come very soon, Ananthasubramanian said that all banks have brought huge cuts to the MCLR (marginal costs of funds based lending rates) after demonetisation already and these cover all the benefits the RBI passed onto the banks.
India's HDFC Bank Ltd is set to cut its marginal cost of funds-based lending rates (MCLR) across maturities by 75 to 90 basis points, effective January 7, a source with direct knowledge said on Wednesday.
The substantial cut of 0.90% by the State Bank of India in its marginal cost of funds-based lending rate (MCLR), has created a lot of interest amongst the general public and borrowers, in particular. R
Loan growth will remain cautious post Marginal Cost of Funds based Lending Rate (MCLR) cuts by many banks, said Dipak Gupta, Jt MD of Kotak Mahindra Bank.
The nation's largest lender State Bank of India today said the 90-basis points-reduction in the lending rates is likely to prop up its sagging loan growth and expects to boost the loan book to 8-9 percent for the current financial year.
MCLR-based lending system ensures that any future cuts are transmitted to the borrowers. So even if interest rates are cut in the future, borrowers will be able to get the benefits of the rate cuts.
An open market operation (OMO) is a market operation conducted by RBI by way of sale or purchase of government securities to or from the market with an objective to adjust rupee liquidity conditions on a durable basis.
A day after SBI slashed its rate offering steeply, country's fourth biggest private sector lender Kotak Mahindra Bank today announced a cut of up to 0.45 percent in its lending rates.
RK Bansal, ED, IDBI Bank told CNBC-TV18 that they haven't taken a call on offloading its stake NSE and will wait for the IPO.
Taking markets by surprise, the Reserve Bank of India (RBI) governor Urjit Patel, on December 7, 2016, kept short-term lending rates unchanged, even as the central bank lowered GDP growth rate to 7.1% and R
The benchmark 10-year government-security yield remained stuck in 8-7.5 percent range through all of 2015 and half of 2016, moving lower to sub-7 percent only when the RBI promised in April to reduce the system's liquidity deficit. The yield may now fall more.
Keki Mistry, the mortgage lender's VC and CEO, says the valuation of HDFC Standard Life will be high. Also, expect lending rates to go down by a few basis points.
A number of banks, including ICICI Bank, Bank of India, IDBI Bank Friday joined their peers like SBI, HDFC Bank and Axis Bank to make a shift to lending rates based on marginal cost of funds.
For one year loan, the interest rate will be 9.20 while for two years it is going to be 9.3 percent, sources said.
The new rules would thus force lenders to adjust their lending rates based on market rates, removing some of the sector's discretion in deciding how much to charge for loans.
The People's Bank of China (PBOC) said on its website that it was lowering the one-year benchmark bank lending rate by 25 basis points to 4.35 percent, effective from Oct 24.
This is the third base rate cut this week with HDFC Bank paring rates to 9.35 percent effective Tuesday and Canara Bank trimmed rates to 9.9 percent effective Thursday.
Reserve Bank of India, on Tuesday, released draft guidelines of new formula to calculate policy rates to ensure that policy rates are passed on to the customers by banks as the earliest.
In the third bi-monthly monetary policy meet today, RBI Governor Raghuram Rajan said banks have merely lowered lending rates by a fraction.
The central bank said the move would support the healthy development of the economy.