New Delhi: A day after the Reserve Bank of India announced to reduce the repo rate, Bank of Baroda announced to pass on the benefits to the customers. The public sector bank on Thursday announced immediate transmission of the RBI policy rate cut to its customers.
Bank of Baroda has reduced its external benchmark-linked lending rates for loans catering to Retail and MSME segments, ensuring that customers benefit quickly from the RBI’s monetary policy move.
Additionally, the Bank’s Overnight Marginal Cost of Funds-Based Lending Rate (MCLR) stands at 8.15%, and its One-Year MCLR is 9%, positioning Bank of Baroda among the most competitive banks in the industry.
“This move reaffirms Bank of Baroda’s commitment to providing credit on affordable rates to individuals and businesses, supporting broader economic growth and financial inclusion,” Bank of Baroda said in a statement.
The RBI Monetary Policy Committee on Wednesday unanimously decided to slash the policy rate by 25 basis points to 6.25 per cent, RBI Governor Sanjay Malhotra said.
In his first Monetary Policy in February, Governor Malhotra had reduced the key interest rates after a gap of nearly five years from 6.5 percent to 6.25 percent.
RBI had last reduced the repo rate by 40 basis points to 4 per cent in May 2020, following the outbreak of the Covid pandemic and subsequent lockdown.
Two years later, in May 2022 RBI started a rate hike cycle in view of the Russia-Ukraine war only to hit pause button on interest rates in May 2023.
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