UCO Bank reduced its marginal cost of fund-based lending rate by 10 basis points across tenures after the RBI cut the repo rate by 50 bps on Friday.
The MCLR has been reduced across all tenors. This means that loans linked to the MCLR, such as home loans, personal loans and some business loans, may become cheaper for customers, according to an exchange filing.
Effective from June 10, the overnight MCLR has been decreased from 8.25% to 8.15%. The one-month MCLR has been lowered from 8.45% to 8.35%.
Three-month MCLR has seen a 10 bps cut from 8.6% to 8.5% and the six-month MCLR from 8.9% to 8.8%. The one-year MCLR decreased from 9.1% to 9%.
Other benchmark rates revised will be effective from June 9. All treasury bill-linked rates like three months, six months and 12 months have been reduced from their previous rates of 6% or 6.05% to a uniform 5.8%.
UCO Float rate decreased from 8.8% to 8.3% and UCO Prime has been lowered from 6% to 5.5%.
The Reserve Bank of India’s Monetary Policy Committee, led by Governor Sanjay Malhotra, reduced the key lending rate to 5.5%. This reduction aims to stimulate economic activity by making borrowing cheaper for businesses and consumers.
It also announced a reduction in the Cash Reserve Ratio by 100 basis points, lowering it from 4% to 3%. This cut will be implemented in four staggered stages and is expected to release primary liquidity of Rs 2.5 lakh crore into the banking system.
Shares of UCO Bank of India closed 5.16% lower at Rs 32.14 apiece on the NSE, compared to a 1.02% advance in the benchmark Nifty on Friday. It has declined 41.39% in the last 12 months and 24.91% on a year-to-date basis.
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