The benchmark one-year MCLR stands reduced to 9.40 per cent with effect from July 1, 2021, CSB Bank said in a regulatory filing on Wednesday.
All other tenor loans, ranging from overnight to six-months, too have been slashed by the same amount of 0.10 per cent, ranging between 7.60-8.40 per cent.
The base rate has been revised to 9.40 per cent from 9.50 per cent per annum, it said. Base rate is the minimum level set by the Reserve Bank, below which banks cannot lend.
Most of the consumer loans, including auto, personal and home, were priced on the basis of the one-year MCLR prior to the introduction of repo-linked lending rate (RLLR) in October 2019.
All new retail loans as well as credit to MSMEs are now linked to RLLR.
The RLLR was mandated by RBI wherein banks have to link all new floating rate personal or retail loans to the repo rate set by the regulator for a better transmission of the policy rate.
CSB Bank stock closed 0.10 per cent down at Rs 347.20 apiece on BSE.
