Public sector lender, Bank of Baroda (BoB) has slashed marginal cost of funds based lending rate (MCLR) on one-year tenor by 10 basis points (bps). In a stock exchange filing, Bank of Baroda has informed about the reducing its MCLR with effect from 12 February. The new reduced rates will make home, auto and other loans cheaper for new borrowers.
The rate reduction comes as a surprise to the borrowers despite the Reserve Bank of India (RBI) consistent stand on the repo rate unchanged at 5.15 percent during the last meeting on 6 February. Repo rate is the interest rate at which the central bank lends money to commercial banks.
With this, BoB’s MCLR rate is now down from 10 bps to 7.55 now and one-month rate down 5 bps to 7.55 percent.
Besides, Bank of Baroda has revised its fixed deposit (FD) rates with effect from 10 February. After the latest revision, the lender is giving interest rates ranging between 4.5 percent to 6.25 percent on deposits maturing in 7 days to 10 years.
Last week India’s largest lender State Bank of India (SBI) announced announced a reduction in its MCLR, or marginal cost of funds based lending rate, by 5 basis points across all tenors, with effect from 10th February. With this rate revision, the one-year MCLR comes down to 7.85 percent per annum from 7.90 percent per annum.
Bank of India has reduced MCLR by 10 bps for maturities upto 6 months