Bank of India, as well as IDBI Bank, revised their MCLR for select tenures this week.

BOI lowered its marginal cost-based lending rate (MCLR) for the 6-month tenure by 5 basis points this week. However, it has kept the rates unchanged for the rest of the tenures.

The lender's six-month MCLR was reduced to 8.55 percent from the earlier 8.6 percent. The new rate will be effective from 10 April 2019. It had reduced its MCLR for one-year tenure, which most retail loan pricing is based on, by 5 basis points in March to 8.65 percent.

LIC-owned IDBI Bank also cut its lending rates by 5 basis points for most of the tenures with effect from 12 April.

In a statement on Thursday, the bank said that its one-year MCLR has been reduced to 9 percent. It revised six month and two-year MCLR now stands at 8.60 percent and 9.25 percent, respectively.

Further IDBI Bank has reduced its one-month lending rate by 10 basis points to 8.15 percent.

Banks have started reducing MCLR following a 25 basis point repo rate cut by the Reserve Bank in its first bi-monthly monetary policy review announced on 4 April. This is RBI's second consecutive cut in repo rate.

Other lenders like Bank of Maharashtra, State Bank of India and Kotak Mahindra Bank also recently announced a cut in the lending rates.