More banks, HFCs announce rate cuts

Lending rate cuts by banks and non-banking financial companies continued with HDFC Bank, Canara Bank and DHFL announcing reduction. HDFC Bank’s asset liability committee decided for a cut of 0.75-0.90% in marginal cost of funds-based lending rate (MCLR) across multiple tenures.

State-run Canara Bank on Wednesday said it has reduced the MCLR by up to 75 basis points for various maturities. The new rates are effective from January 7, the bank said in a statement. The overnight MCLR has been reduced by 70 basis points to 8.20% from 8.90%. The three-month MCLR has been reduced to 8.30% from 9.05%. The one-year loan will now attract an interest of 8.45% against 9.15%, the bank said.