Bank of Baroda to hike MCLR by up to 35 bps, effective 12 Jan
The new rates are effective from 12 January, BoB said in a regulatory filing
State-owned Bank of Baroda (BoB) on Tuesday increased the marginal cost of funds-based lending rates (MCLR) by up to 35 basis points (bps) across tenors.
This hike by the Mumbai-based public sector lender is steeper than compared to upto 30 bps upward revision made in December 2022.
The new rates are effective from 12 January, BoB said in a regulatory filing.
The overnight MCLR rate has been revised upward by 35 basis points to 7.85 per cent, while that of one month tenure has been hiked by 20 basis points to 8.15 per cent, the bank said.
The three-month MCLR has been raised to 8.25 per cent from 8.05 per cent in December. Among others, the six-month MCLR stands revised to 8.35 per cent from 8.15 per cent in December, BoB said.
For one-year maturity, it said the new rate will be increased to 8.50 per cent against 8.20 per cent.
The rise in MCLR will impact corporate borrowers. Retail lending – housing, personal credit and SMEs – is predominantly linked to external benchmarks such as policy repo rate.
Loans of Indian banks rose 17.5 per cent in the two weeks to 2 December from a year earlier, while deposits rose 9.9 per cent, the latest data from the RBI had showed.
The RBI's rate-setting Monetary Policy Committee has raised interest rates by a total of 225 bps over five meetings since May 2022.
