Bank of Baroda Slashes Lending Rate by 10 Basis Points, Loans to Get Cheaper
The rate cut by Bank of Baroda comes a month after The Reserve Bank of India slashed key lending rate by 0.25 percentage points to 6.25 per cent on expectation of inflation staying within its target range.
File photo of a Bank of Baroda branch.
New Delhi: State-owned Bank of Baroda (BoB) on Tuesday cut benchmark lending rate by 0.1 percentage points, a move that would make home, auto and other loans cheaper.
The bank has reduced the lending rate by 10 basis points across all tenors up to one year.
The new rates are effective from March 7, BoB said in a regulatory filing.
The Marginal Cost of Funds Based Lending Rate (MCLR) for overnight and one-month tenors would be 8.25 per cent and 8.30 per cent, respectively, it said.
The MCLR for one-year tenor was slashed to 8.65 per cent from 8.75 per cent. Most of the retail loans are benchmarked against one-year MCLR.
The rate cut comes a month after The Reserve Bank slashed key lending rate by 0.25 percentage points to 6.25 per cent on expectation of inflation staying within its target range.
Banks have been lagging in passing on the RBI rate cuts to end-borrowers, citing higher credit cost due to the massive NPA piles.
Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.
|Dr Reddys Labs||2,731.55||-1.28|
Recommended For You
- This is My Father's Money, Says KBC 11 Crorepati Sanoj Raj
- Russian Goalkeeper Saveli Kononov Gets AK-47 for his Man of the Match Performance
- Rajinikanth, Akshay Kumar's 2.0 Flops in China But Bollywood Can Avoid the Mistake
- 2020 Women's U-17 FIFA World Cup to be Held in India from November 2-21
- Delhi Airport Facial Recognition Trial Calls for Establishment of Cybersecurity Laws