The newly updated rate will be applicable at various tenor loans from March 1. The bank has cut the one-year tenor loans to 8.45 percent from 8.55 percent, against which most of the consumer loans are benchmarked.
The three-year MCLR has been reduced to 8.65 percent. The rates decided for overnight, one/three/six month MCLRs are also brought down by 10 basis points each at 8.05 per cent, 8.10 per cent and 8.15 per cent respectively.
Further, the bank said that the base rate at 9.25 percent is unchanged.
On February 8, the State Bank of India (SBI) announced the reduction of home loan rates by 0.05 percentage point for loans up to Rs 30 lakh.
In its last bi-monthly policy review for 2018-19, the Reserve Bank of India (RBI) had reduced the key repo rate by 25 basis points to 6.25 per cent, helping the banks in making consumer loans cheaper.