Bank of Baroda Wednesday said it has increased the marginal cost of funds based lending rate (MCLR) by 0.05 per cent across tenors, days after market leader SBI hiked the rates.
The bank has revised MCLR at 5 basis points (bps) above existing level across all tenors with effect from September 7, 2018, the bank said in a release. The one-year MCLR has been increased to 8.55 per cent from 8.50 per cent.
Among others, six and three-month MCLR will attract lending rates of 8.40 per cent and 8.20 per cent, respectively. Overnight and one-month rates will be at 8.05 per cent and 8.10 per cent, Bank of Baroda said.
Last week, SBI had increased the lending rate by 20 basis points or 0.20 per cent across all tenors up to three years. SBI’s MCLR for a one-year tenor has been increased to 8.45 per cent from 8.25 per cent. Most of the retail loans are bench-marked against one-year MCLR.
The MCLR for a three-year tenor of SBI increased to 8.65 per cent from 8.45 per cent. Likewise, private sector ICICI Bank had announced to increase the one-year MCLR by 0.15 per cent to 8.55 per cent.
The rise in MCLR will make home, auto and other loans costlier for customers. Stock of Bank of Baroda closed 0.62 per cent down at Rs 144.45 on BSE.