Bank of Baroda (BoB) has reduced the marginal cost of funds based lending rate (MCLR) on one year tenor by 10 basis points (bps). Bank of Baroda informed about the reduction in its MCLR with effect from 12 February. The reduction in MCLR rates will make home, auto and other loans and cheaper for new borrowers. The rate reduction comes even as Reserve Bank of India (RBI) in a surprise move had kept the repo rate unchanged at 5.15 per cent at the last meeting on 6 February. Repo rate is the interest rate at which the RBI lends money to commercial banks. BoB’s overnight MCLR rate is down 10 bps to 7.55 now and one-month rate down 5 bps to 7.55 per cent now. It has also reduced by 10 bps in three-months and six months MCLR to 7.70 per cent and 8 per cent, respectively.
Bank of Baroda has also revised fixed deposit (FD) rates with effect from today, 10 February. After the latest revision, the bank is giving interest rates ranging between 4.5 per cent to 6.25 per cent on deposits maturing in 7 days to 10 years.
Read EquityPandit’s Nifty Bank Outlook for the Week