Bank of Baroda Rapidly Implements RBI Rate Cut

Bank of Baroda announces immediate application of RBI's 25 basis point rate cut, reducing lending rates for retail and MSME loans. This move quickly transfers the benefits of RBI's monetary policy to customers. The bank retains the marginal cost of funds-based lending rate at 9 percent.

The State-owned Bank of Baroda has taken swift action following the Reserve Bank of India's decision to cut policy rates by 25 basis points. On Thursday, BoB announced the immediate reduction of its external benchmark-linked lending rates by the same amount. This adjustment is set to benefit customers in the retail and MSME segments.

The Reserve Bank's decision, made to bolster growth amid concerns over potential reciprocal tariffs by the U.S., was its second consecutive rate cut. BoB's quick response ensures that customers can rapidly experience the advantages of this monetary policy change.

However, the bank has opted to keep its marginal cost of funds-based lending rate (MCLR) unchanged. The benchmark one-year tenor MCLR, which influences the pricing of many consumer loans, continues to stand at 9 percent.

(With inputs from agencies.)