Bank Of Baroda Raises Lending Rates By 5 Basis Points Across Three Tenures

State-owned Bank of Baroda has raised its marginal cost of fund-based lending rate (MCLR) by 5 basis points across three different periods. The one-year MCLR now stands at 8.85 per cent, while the six-month and three-month MCLR rates have been adjusted to 8.65 per cent and 8.45 per cent, respectively. Typically, most non-retail loans are linked to the one-year MCLR.

In its April review of monetary policy, the Reserve Bank of India (RBI) opted to maintain the policy repo rate at 6.5 per cent. The RBI noted that the transmission of monetary policy adjustments, despite a 250 basis points hike in the repo rate since May 2022, remained incomplete. Consequently, the RBI anticipates further rate adjustments by banks. Last month, HDFC Bank, the largest private sector lender in the country, also raised its MCLR on select tenures by 5 basis points.