State-owned Bank of Baroda on Thursday said it has increased its marginal cost of funds based lending rate (MCLR) by up to 15 basis points (bps) across tenors.
The lender has approved the revision in marginal cost of funds based lending rate (MCLR) with effect from November 12, 2022, Bank of Baroda said in a regulatory filing.
The benchmark one-year tenor MCLR has been raised by 10 basis points to 8.05 per cent. It is the rate at which most of the consumer loans such as personal, auto and home are tied to.
Among others, the overnight rate has been raised to 7.25 per cent from 7.10 per cent earlier.
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The one, three and six-month MCLRs were raised by 10 basis points each to 7.70 per cent, 7.75 per cent and 7.90 per cent, respectively.
Rate hike by Bank of Baroda comes a day after its counterpart Bank of Maharashtra increased MCLR rate by 10 basis points.
The benchmark one-year MCLR was revised upwards to 7.90 per cent from 7.80 per cent, the lender said in a regulatory filing.
The revised MCLR came into effect from November 7, 2022.
The one-month MCLR has been raised by 5 basis points to 7.50 per cent.
Rates for other tenor loans like overnight, three and six months have been kept unchanged.
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Banks are on rate hiking spree after the Reserve Bank of India increased its key lending rate to 5.9 per cent in September. On September 30, the RBI increased the repo rate by 50 basis points to 5.9 per cent, the fourth rate hike since May this year, in efforts to rein in inflation.
(With PTI inputs)
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