Bank of Baroda has kept its Marginal Cost of Funds Based Lending Rate unchanged across all tenors effective April 12, 2026, the public sector lender disclosed to BSE and NSE on April 10, 2026 under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations.
The reviewed MCLR structure effective April 12 is as follows: the overnight rate remains at 7.80%, the one-month rate at 7.90%, the three-month rate at 8.15%, the six-month rate at 8.45%, and the benchmark one-year MCLR at 8.70%. All rates are identical to the existing structure, indicating no change in the bank's assessment of its marginal cost of funds at this review.
The decision to hold MCLR steady is consistent with the RBI's own rate posture. The Monetary Policy Committee held the repo rate at 5.25% at its April 8 meeting, the second consecutive hold after 125 basis points of cuts through 2025. MCLR is mechanically linked to a bank's cost of funds - which includes deposit rates, the repo rate, and operating costs - and with the RBI on hold, there is limited scope for banks to move MCLR meaningfully in either direction without a corresponding change in the policy rate environment.
The one-year MCLR at 8.70% is the most consequential rate in the Bank of Baroda disclosure because it is the benchmark to which the majority of floating rate loans - including home loans, auto loans, and working capital facilities sanctioned before the external benchmark linked rate regime - are tied. Borrowers on MCLR-linked loans with annual reset dates will see no change in their equated monthly instalments as a result of this review.
The hold on MCLR also reflects the broader uncertainty in the interest rate environment created by the Iran war and its inflationary consequences. US CPI for March 2026 came in at 3.3% year-on-year with the largest gasoline price spike since 1967, pushing traders to price out Federal Reserve rate cuts for all of 2026. That global rate environment constrains the RBI's ability to cut further, which in turn constrains Bank of Baroda's ability to reduce its own cost of funds and pass on lower rates to borrowers through the MCLR mechanism.
Bank of Baroda is listed on BSE under scrip code 532134 and on NSE under the symbol BANKBARODA.
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