INSUBCONTINENT EXCLUSIVE:
Bank of Baroda revised its marginal cost
of funds based lending rates (MCLR) on Tuesday
The new rates will be effective from June 7, Thursday
"The bank's 1-year MCLR will be 8.45 per cent, which is competitive as per the current market scenario," the bank said in a stock market
The overnight tenor MCLR (lending rates) has been raised from 7.9 per cent to 7.95 per cent
Similarly, the one month tenor MCLR (lending rates) has been raised from 7.95 per cent to 8 per cent
The three-month MCLR (lending rates) has been raised from 8.05 per cent to 8.1 percent
The six month tenor MCLR has been raised from 8.25 per cent to 8.3 per cent
month7.958three months8.058.1six months8.258.3one year8.48.45MCLR is the minimum rate below which commercial banks cannot lend to its
The Reserve Bank of India (RBI), in April 2016 unveiled the concept of MCLR, which sought to remove much of the discretion commercial banks
have to set lending rates.With effect from June 1, country's largest lender State Bank of India (SBI) raised its marginal cost of funds
based lending rates (MCLR) by 10 basis points across the tenors.SBI's lending ratesTenorExisting MCLR (In %)Revised MCLR (In %)Over
night7.807.90One Month7.807.90Three Month7.857.95Six Month8.008.10One Year8.158.25Two Years8.258.35Three Years8.358.45The last time ICICI
Bank, State Bank of India and Punjab National Bank raised their lending rates (MCLR) was in the month of March 2018
During that time, the rate hike took place a day after SBI raised its fixed deposit (FD) interest rates.Following the SBI, Punjab National
Bank (PNB), ICICI Bank, HDFC Ltd and Kotak Mahindra Bank also raised their lending rates (MCLRs), thus adding to the EMI (equated monthly
instalments) burden of borrowers.
