Banco do Baroda raises interest rate by 0.1%


The state-owned Bank of Baroda raised its MCLR by 0.1% on several effective dates as of November 7, making home and car financing expensive.

The interest rate for different categories of borrowers is tied to the marginal cost of the MCLR.

"The MCLR was revised to 10 BPS above the current level, ie, November 7, 2018," the bank said in a statement.

The bank's one-year MCLR will be 8.65%, which is competitive according to the current market scenario.

For all other tenors – overnight, one month, three months and six months – rates are 8.15%, 8.20%, 8.30% and 8.50%, respectively.

The bank also said it does not add any mark-up on its MCLR to its top-rated homeowners.

A one-year MCLR, or 8.65 percent, is applicable regardless of the total amount of the home loan and is available for a term of up to 30 years, he added.

Bank of Baroda reported a 19.7% increase in quarterly profit in September at Rs 425.38 crore as it marginally improved its NPA (non-performing assets) position.

Its profit was Rs 355.36 crore in the quarter from July to September 2017-18.

The bank's script closed at Rs 110.5 each on BSE, down 0.76%.


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