The decision follows a recent review by the bank’s Asset Liability Management Committee (ALCO), which convened on July 14, said a statement.
The revised MCLR rates effective July 15, 2025, are as follows: the overnight rate has been reduced from 8.25% to 8.15%, the one-month rate from 8.50% to 8.40%, the three-month rate from 8.65% to 8.55%, the six-month rate from 8.90% to 8.80%, and the one-year rate from 9.10% to 9.00%.
This move comes shortly after the bank had reduced its Repo Linked Lending Rate (RLLR) by 50 basis points—from 8.85% to 8.35%—with effect from June 12, 2025.
The rate cut is expected to lower borrowing costs for retail and corporate customers.
