Bank of Baroda on Thursday cut the marginal cost of funds based lending rate (MCLR) by 0.15 per cent across all tenors. The one-year tenor, the benchmark for all consumer loans such as auto, retail, housing, has been lowered to 8 per cent from 8.15 per cent, state-run Bank of Baroda said in an exchange filing. "The bank has revised marginal cost of funds based lending rate (MCLR) with effect from April 12, 2020," Bank of Baroda said. For the overnight to six-month tenor loans, the MCLR has been cut to 7.40-7.85 per cent. With the rates coming down, the cost of consumer loans is expected to come down for the customers. Earlier State Bank of India (SBI) cut MCLR by 0.35 per cent across all tenors. The bank also revised interest rates on savings accounts lower to 2.75 percent from 3 percent, to be effective April 15. The SBI last month had cut the lending rates by 75 basis points, passing on the entire repo rate cut made by the RBI to the customers. Even interest rates on retail and bulk deposits were reduced between 20 to 100 basis points across various tenors.Shares of Bank of Baroda settled 5.28 per cent down at Rs 50.85 apiece from the previous close on the BSE. Meanwhile, equity benchmark indices -- Sensex and Nifty -- closed 4.2 per cent higher on Thursday, led by gains in pharma, auto and FMCG stocks tracking trend from strong global cues. The 30-share BSE Sensex closed 1,265 points higher at 31,159 and 50-share barometer NSE Nifty ended 363 points higher at 9,111.
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