New Delhi: State-owned Bank of Baroda (BoB) on Tuesday announced an increase in its lending rate by up to 10 basis points (0.1 per cent), joining its peers that have raised rates after the surprise tightening of monetary policy by the RBI last week.
The bank has hiked the marginal cost of funds based lending rate (MCLR) by up to 0.1 per cent on various tenures effective May 12, BoB said in a regulatory filing.
The 1-year MCLR — the rate to which a majority of consumer loans are linked — has been revised to 7.40 per cent from 7.35 per cent, an increase of 5 basis points.
Similarly, MCLR for three-month and six-month tenures has been increased by 5 basis points (bps) to 7.15 per cent and 7.25 per cent, respectively.
At the lower end, overnight and one-month MCLR has been raised by 10 basis points to 6.60 per cent and 7.05 per cent, respectively.
The Reserve Bank on May 4 hiked the repo rate — at which it lends to the system — by 0.40 per cent to help tame inflation, which is consistently breaching the upper end of its target level. It also sucked out Rs 87,000 crore of excess liquidity by hiking the cash reserve ratio (CRR) by 0.50 per cent.