Union Bank of India reduces lending rates by 10 basis points(bps)

State-run Union Bank of India on Friday said it had decreased the marginal cost of funds-based lending rate (MCLR) by 10 basis points throughout all tenors.

The bank has decreased its 1-year MCLR or the least lending rate, upon which maximum of the consumer loans are gauged, to 8.60 percent from 8.70 percent earlier.

The bank in a statement said, "Taking a cue from the latest measures announced by the Reserve Bank of India (RBI) and to support the growth of the economy, we have reduced MCLR by 10 basis points across all tenors.”

The bank has established the new 6-month MCLR at 8.50 percent and 2 years at 8.70 percent.

It has also lessened the base rate from 9.10 percent to 9 percent. The new measures are valid on March 1, 2019.

Banks have started lessening their MCLR standards following a 25 basis point cut in repo rate by RBI in the 5th bi-monthly policy review in February.

On Thursday, private sector Kotak Mahindra Bank dropped its lending rate by an indifferent 5 basis points. Its new 1 year MCLR now holds at 9 percent.

Punjab National Bank (PNB) has diminished the MCLR by 0.10 percentage point for multiple tenor loans. The 1-year tenor loans have been cut to 8.45 percent from 8.55 percent.

Post the RBI's rebate of the repo rate, SBI decreased home loan rates by 5 basis points for all loans up to Rs 30 lakh.

Union Bank also said Manas Ranjan Biswal had assumed the command of executive director of the bank.