New Delhi: State-owned Bank of Baroda said in a regulatory filing on Wednesday that it has reviewed its MCLR. However, the filing also showed that the bank has not revised them. The overnight MCLR stood at 7.95 percent, one-month MCLR at 8.2 percent, three-month MCLR at 8.3 percent, six-month MCLR at 8.4 percent, and one-year MCLR at 8.6 percent.

Banks alter the interest rates on their loans and advances depending on their analysis of the Marginal Cost of Funds based Lending Rate (MCLR). The marginal cost of funds, which comprises the cost of borrowing money, administrative costs, and profit margin, is used to establish the minimal interest rate that a bank can charge on loans.

Reviewing and changing the MCLR enables banks to remain competitive in the lending market and adapt to changes in the interest rate environment. In order to maintain the banks' profitability and liquidity, it also makes sure that the lending rates reflect the current cost of capital. Overall, monitoring the MCLR is crucial for controlling bank lending rates and ensuring responsiveness to market conditions.

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