Bank of Baroda to hike MCLR lending rates from August 12; details here

Bank of Baroda informed exchanges that it has decided to revise MCLR lending rates on select tenors from August 12, 2022.

ET Now Digital

Updated Aug 10, 2022, 18:33 IST

Bank of Baroda to hike MCLR lending rates from August 12

Photo : PTI

Bank of Baroda said it will raise the marginal cost of fund-based lending rates (MCLR) by up to 20 basis points across all tenors from August 12.

The public lender informed exchanges that it has decided to revise MCLR lending rates on select tenors from August 12, 2022.

The one-year MCLR, which forms the basis of most consumer and personal loans, was revised to 7.70%, up by 5 basis points from 7.65% earlier.

Bank of Baroda’s one-month MCLR was revised upwards by 20 basis points to 7.40% while three and six-month tenors were hiked upwards by 0.10% to 7.45% and 7.55%, respectively.

BoB earlier hiked the Baroda Repo Linked Lending Rate (BRLLR) with effect from August 6, 2022. For retail loans, the BRLLR was raised to 7.95%. The BRLLR is made up of the current RBI repo rate i.e., 5.40% and a mark-up/base spread of 2.55%, according to the bank's website. Details of the recent hike are awaited as the bank’s website was down at the time of writing this report.

Several banks have raised lending rates after the Reserve Bank of India (RBI) raised repo rates by 50 basis points last week.

Earlier today Kotak Mahindra Bank raised interest rates, according to the private lender’s website. The revised rates will become effective from August 10, 2022. It hiked rates on deposits below Rs 2 crore of multiple tenors. For fixed deposits with maturities ranging from 7 days to 10 years, the bank offers rates of 2.50% to 5.90% for normal depositors and 3% to 6.40% for senior citizens.

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