10 April 2024 – Bank of Baroda (BoB), a prominent public sector lender, has announced a marginal increase of 5 basis points (bps) in its marginal cost of funds linked lending rates across various tenures. This move comes amidst changing market dynamics and aims to align the bank’s lending rates with prevailing economic conditions.
In a recent exchange notification, Bank of Baroda disclosed its decision to raise lending rates by 5 basis points, with rates now reaching up to 8.80 percent. The hike affects various tenures, with overnight lending rates adjusted to 8.10 percent from 8.05 percent. Additionally, three-month, six-month, and one-year tenor lending rates have been increased by 5 bps each, reaching 8.45 percent, 8.65 percent, and 8.85 percent, respectively.
The revised lending rates will come into effect from April 12, 2024, as confirmed by the company spokesperson. Notably, the last revision of the Marginal Cost of Funds Based Lending Rates (MCLR) occurred in January 2024, highlighting the bank’s periodic review of lending rates in response to market dynamics.
Earlier, HDFC Bank, India’s largest private sector lender, raised its repo-linked home loan interest rates by 10-15 basis points in March, following its merger with HDFC. This adjustment was attributed to the merger’s impact on the bank’s operational structure, leading to changes in the home loan interest rates. As a result of the merger, HDFC Bank’s home loan interest rates are no longer linked to the retail prime lending rate (RPLR).
