United Bank of India reduces its MCLR

State-owned United Bank of India has reduced its MCLRs by 5 basis points across tenures, effective Thursday. The bank's asset-liability management committee in its meeting on Tuesday revised tenure-based MCLRs of the bank to be effective from Thursday, it said in a regulatory filing. One-year marginal cost of funds-based lending rate (MCLR) has been reduced to 8.80 per cent from 8.85 per cent. The one-year MCLR is the benchmark against which most of the consumer lending, such as auto, personal and home loans, are priced. Among others, the six-month and three-month MCLRs have been cut to 8.60 per cent and 8.50 per cent, respectively. Likewise, the one-month and overnight MCLR rates are reduced by five basis points (bps) each, the bank said. One basis point is equal to one-hundredth part of a percentage. The banks review their MCLRs every month.