United Bank of India trims MCLR rate by 90 basis points; shares gain

Government-owned United Bank of India (UBI) on Thursday joined the bandwagon of rate cuts by trimming its marginal cost of fund based lending rate (MCLR) in the range of 55 basis points - 90 basis points for different tenure effective from January 06, 2017.

Now, for  a tenure of one year the new MCLR rate is 8.80 from its earlier 9.40%. 

Shares of UBI were trading at Rs 20.60 per share on BSE, up by 1.23%.

Not only banks but NBFCs have been in a rate cut war. Both banks and NBFC have  reduced MCLR in the range of 40 basis points - 90 basis points within just 4 days of January 2017. 

Lending rates are currently at a six year low.