Mumbai: State-owned Union Bank of India (UBI) on Monday reduced its lending rates linked to external benchmark by 75 basis points (bps) to 7.20 per cent, in line with the Reserve Bank of India's (RBI) recent repo rate cut.
The new rate will be applicable for all floating-rate personal or retail loans (such as housing and automobiles) and floating-rate loans to micro, small and medium enterprises, according to an official statement.
It will also be applicable for customers of Andhra Bank and Corporation Bank which will be merged into Union Bank of India from Wednesday, it said.
UBI's asset liability committee took the decision at its meeting on Monday, the statement said.
The move comes within three days of a 0.75 per cent cut in the repo rate by the RBI and similar moves by peers, including State Bank of India and Bank of India.
Indian Bank cuts various lending rates from April 1
Indian Bank on Monday announced a cut its lending rates following a 0.75 percentage point reduction in the repo rate by the Reserve Bank last week.
The bank has revised the different lending rates with effect from April 1, 2020, Indian Bank said in a regulatory filing.
It has cut the benchmark one-year tenor marginal cost of funds based lending rate (MCLR) by 0.15 per cent to 8.10 per cent.
It is the rate against which most of the personal and consumer loans are set.
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Indian Bank said this is applicable for the amalgamated entity. As the mega banks' merger kicks-in from April 1, Indian Bank will amalgamate Allahabad Bank into itself.
For other tenors in MCLR, from overnight to 6 months lending, the rates have been slashed in the range of 0.05 to 0.10 per cent.
The bank has also cut the base rate to 9.15 per cent from 9.45 per cent earlier. It is the minimum threshold below which a bank cannot lend.
Besides, the benchmark prime lending rate (BPLR) has now been brought down to 13.40 per cent from 14.20 per cent.
(PTI Report)
