Bank of Baroda hikes MCLR by 0.05%

New Delhi: State-owned Bank of Baroda (BoB) Saturday said it has hiked its marginal cost of funds based lending rate (MCLR) by 0.05 per cent with effect from May 7.

This goes against the recent trend of banks reducing MCLR rates. For example, HDFC Bank and Axis Bank cut their MCLR rates for most tenors as recently as last month. It is to be seen whether BoB's move indicates a reversal in trend.

BoB has hiked the lending rates for overnight tenor to 8.30 per cent from the previous 8.25 per cent.


Similarly, for one-month and three-month tenors the interest rates have been increased to 8.35 per cent and 8.45 per cent, respectively.

Rate for six-month tenor has been hiked to 8.65 per cent and one-year tenor to 8.70 per cent with effect from May 7, BoB said in a BSE filing.

(With inputs from ET Online.)