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Bank of Baroda hikes MCLR across tenors by 0.05 percentage points 

Bank of Baroda hikes MCLR across tenors by 0.05 percentage points 

As per the notification, the benchmark one-year tenor MLCR will rise to 7.35 per cent. 

Bank of Baroda Bank of Baroda

State-owned Bank of Baroda (BoB) on Monday said it has raised the marginal cost of funds based lending rates (MCLR) by 0.05 percentage points across tenors with effect from April 12, 2022.

As per the notification, the benchmark one-year tenor MLCR will rise to 7.35 per cent. 

Similarly, the overnight, one-month, three-month and six-month MCLRs have been hiked by 0.05 percentage points each to 6.50 per cent, 6.95 per cent, 7.10 per cent and 7.20 per cent, respectively.

The benchmark one-year tenor MCLR will make consumer loans such as personal, auto and home loans pricey among others.

Graphic credit: Mohsin Shaikh

Meanwhile, the Reserve Bank of India (RBI)'s Monetary Policy Committee last Friday voted to keep the benchmark repo and reverse repo rates unchanged for the 11th consecutive time. "MPC voted unanimously to leave the repo rate unchanged at 4 per cent. MPC also voted unanimously to keep the stance accommodative," RBI Governor Shaktikanta Das said in his Monetary Policy Statement.

The repo rate is the interest rate at which the RBI lends short-term funds to banks. The reverse repo rate, the interest rate at which the RBI borrows from banks, remains unchanged at 3.35 per cent. However, it said to prioritise inflation over growth going ahead, as the geopolitical tensions have fuelled price rise across the globe.

Shares of Bank of Baroda were trading at Rs 121.15, up 0.66 per cent during late trade on BSE.

ALSO READ: Bank of Baroda revises interest rates on fixed deposits for up to Rs 2 cr 

Published on: Apr 11, 2022, 1:59 PM IST
Posted by: Aparna Banerjea, Apr 11, 2022, 1:54 PM IST