Bank of Baroda hikes 10-20 bps MCLR across loan tenures effective June 12

Bank of Baroda announced the revision of its marginal cost of funds-based lending rates on Friday. The bank hiked its MCLR rates by 10-20 bps across all loan tenures, effective June 12.

The MCLR lending rates for the shorter tenures such as overnight and one-month periods saw the highest increase of 0.20% and 0.15% from 6.60% to 6.80% and 7.05% to 7.20% respectively. The remaining loan terms of three-month, six-month and one year saw a uniform increment of 0.10% to 7.25%, 7.35% and 7.50% respectively, as announced by the lender in its regulatory filing.

The new lending rates are to come into effect from Sunday (June 12).  

The move came after the Reserve Bank of India (RBI) raised the repo rate by 50 basis points (bps) to 4.90 per cent in its most recent monetary policy committee meeting (MPC). Repo is the rate at which RBI lends to banks for their short-term borrowing needs.

Shares of Bank of Baroda went down 0.19% to Rs.104.85 per share on Friday.

A number of banks including ICICI Bank, Punjab National Bank (PNB), Bank of India, Indian Bank, Indian Overseas Bank and the country's leading mortgage lender HDFC Ltd have raised lending rates for their customers.

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