New Delhi: State-owned Bank of Baroda (BoB) on Tuesday hiked Marginal Cost of Funds based Lending Rate (MCLR) by up to 35 basis points, making loans linked to the benchmark rates expensive. The new rates will be effective from January 12, said BoB in a regulatory filing. The overnight MCLR has been increased to 7.85 percent from previous 7.50 percent, an increase of 35 basis points. The MCLR for one-month, three-month, six-month and one year tenor loans have been hiked by 20 basis points.
The lending rate for one-month tenor loans will now be 8.15 percent, three months at 8.25 percent, six months at 8.35 percent and one year at 8.50 percent.
The Reserve Bank of India (RBI) has increased repo rates by 2.25 percent since May last year. The benchmark interest rate now stands at 6.25 percent after the latest round of repo rate hike of 35 basis points on December 7, 2022. Shares of BoB closed 2.56 percent down at Rs 180.50 apiece on Tuesday.
On Monday, HDFC Bank and India Overseas Bank had announced hike in its MCLR by up to 25 basis points.