Axis bank cuts fund-based lending rate

Private sector lender Axis Bank has cut its benchmark marginal cost of funds-based lending rate (MCLR) by five basis points with effect from Tuesday. In a statement, the bank said it had reduced its MCLR across tenures, effectively cutting its overnight lending rate to 8.80%, while its three-year lending rate is 9.35%. One basis point is 0.01 percentage point. Axis’ rate move comes just a few days after the RBI reduced its benchmark repo rate by 25 basis points to 6.25%.