On Monday IDBI stock closed down to Rs 1.5 and it is the second time in a month that IDBI cut its marginal cost of lending rate (MCLR) by 35 points.
MCRL is a new benchmark that used a particular formula to calculate all floating rate loans. The bank overnight lending rate now stands at 8.2%, while one-year loans will be charged an interest rate of 8.80%. The 3-year loans will be offered at a minimum rate of 8.95%.
From January 1, 2017, Mumbai-headquartered public sector bank cut rate and brought down its cost of funds by 30 to 60 basis points.
In the latest announcement, the monetary policy committee (MPC) is widely expected to reduce key rates by 25 basis points.
The bank said in a statement, "The reduction in MCLR is expected to positively impact loan growth; both in the retail consumer segment and corporate sector lending, thereby supporting the growth impulses in the economy”.
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