The Bank of Baroda (Bank) announced that it would immediately transmit the benefit to its customers.
Within 24 hours of the RBI slashing its repo rate, top PSU banks like Punjab National Bank, Bank of India, Indian Bank and UCO Bank announced a cut in their lending rates by up to 35 bps. Now, Bank of Baroda has also joined the list of banks that have reduced rates for both new and existing customers.
The PSU bank 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, Bank of Baroda said in a release on Thursday.
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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,” the release said.
On Wednesday, the Reserve Bank cut the benchmark interest rate by 25 basis points (bps) to 6% for the second consecutive time, after its three-day monetary policy review meeting. In February, the central bank had reduced the rate by a similar margin.
Loan borrowers from other banks would now also be hoping to see their loan interest rates coming down after the RBI’s two consecutive rate cuts, accounting for a 50 bps reduction.