Bank of Baroda has decided to up its marginal cost of funds-based lending rates by up to 20 basis points with effect from February 7.
All rupee loans sanctioned, and credit limits renewed with effect from April 1, 2016, are priced with reference to the MCLR, which is the internal benchmark for such purposes.
In the case of four MCLR tenors up to six months, the rate hike is 20 basis points across the board. The benchmark one-year rate has been upped by 10 basis points from 8.65 per cent to 8.75 per cent.
The MCLR hike announcement by the public sector bank comes ahead of the RBI’s bi-monthly policy announcement.
Market players expect the central bank to maintain status quo on interest rates, even as it is seen changing its monetary policy stance from ‘calibrated tightening’ to ‘neutral’.