EMIs on loans likely to rise as this public sector bank hikes lending rate by up to 0.35%

Making loans linked to the benchmark rates expensive, state-owned Bank of Baroda (BoB) on Tuesday hiked Marginal Cost of Funds based Lending Rate (MCLR) by up to 35 basis points (0.35%).

The new rates will be effective from January 12, 2023, BoB said in a regulatory filing.

The overnight MCLR has been increased to 7.85 per cent from previous 7.50 per cent, an increase of 35 basis points.

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The MCLR for one-, three-, six-month and one year tenor loans have been hiked by 20 basis points.

The lending rate for one-month tenor loans will now be 8.15 per cent, 3 months (8.25 per cent), 6 months (8.35 per cent) and one year (8.50 per cent).

The Reserve Bank of India has increased repo rates by 2.25 per cent since May last year. The benchmark interest rate now stands at 6.25 per cent after the latest round of repo rate hike of 35 basis points on December 7, 2022.

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Shares of BoB closed 2.56 per cent down at Rs 180.50 apiece on Tuesday.

On Monday, HDFC Bank and India Overseas Bank had announced hike in its MCLR by up to 25 basis points.

With PTI Inputs