Bank Of Baroda Hikes MCLR By 10-15 Bps With Effect From 12 Nov, EMIs To Go Up
With effect from 12 November, Bank of Baroda will hike its MCLR rate by 10 to 15 bps. Read on to know more details.
Bank of Baroda, one of the biggest lenders to the public sector, has increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 to 15 basis points. From November 12, the revised MCLR rates will be in effect. Due to the cycle of repo rate hikes, banks in both the public and private sectors have been raising their lending and deposit rates since May of this year.
According to the regulatory filing, Bank of Baroda’s 1-year MCLR will increase from 7.95% to 8.05% with effect from November 12, an increase of 10 basis points. Additionally, from the previously assessed 7.80%, its six-month MCLR has been raised by 10 basis points to 7.90%. The three-month and one-month MCLR have both increased by 10 basis points, respectively. As of November 12, the three-month MCLR will be 7.75% instead of the 7.65% that is presently in place, and the one-month MCLR will be 7.70% instead of the 7.60% that is now in place.
The maximum hike of 15 bps is made in the overnight MCLR rate from 7.10% to 7.25%. As a result of the increase in the MCLR starting on November 12, interest rates on credit cards, personal loans, auto loans, student loans, and other loans will all increase. Therefore, their EMIs will also increase.
The bank currently charges non-staff borrowers an interest rate on home loans ranging from 8.45% to 9.80%. While the house loan interest rate for employees is 8.45%. Additionally, the bank's current interest rates for personal loans range from 10.20% to 17.55%.
The RBI increased the policy repo rate by a staggering 190 basis points, or 1.9%, between May and September policy in order to reduce the multi-year high inflation. The repo rate is currently 5.90%.
The market value of Bank of Baroda is about Rs. 85,560.19 crore presently. The bank reported a standalone net profit of Rs. 3,312.42 crores in Q2FY23, an increase of 58.70% year over year, while net interest income increased by 34.47% year over year to reach 10,174.46 crores. Global deposits at the bank increased by 13.6% yoy to 10,90,172 crores. The bank reported that global advances increased by more than 19% yoy to 8,73,496 crores during the second quarter.
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Disclaimer: All the MCLR rates mentioned above have been recorded at the time of writing and are subject to change in the future.