Canara Bank eases overnight, 1-month MCLR by 5 bps

ET BureauLast Updated: Feb 12, 2026, 06:26:00 AM IST

Synopsis

Canara Bank has lowered its one-month and overnight MCLR rates by five basis points, effective February 12. The new rates of 7.90% and 7.85% respectively will lead to reduced borrowing costs for customers. This move aligns with the RBI's aim for transparent interest rate transmission amidst growing credit demand.

Mumbai: Canara Bank has reduced its one month and overnight MCLR rates by five basis points to 7.90% and 7.85% respectively. The revised rates, which means cheaper borrowing costs, will take effect from February 12. MCLR (marginal cost of funds based lending rate) is the minimum interest rate a bank must charge for loans, introduced by the RBI to ensure transparent, faster interest rate transmission. The reduction in MCLR rates comes amid a demand for credit, both by retail and who-lesale participants.

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