Bank of Baroda to increase MCLR rates by up to 0.2% from August 12

The interest rate hike comes after the Reserve Bank of India's (RBI's) six-member monetary policy committee (MPC) raised the benchmark repo rate by another 50 bps to 5.40 per cent last week

Public sector lender Bank of Baroda on Wednesday informed the stock exchanges that it would raise the marginal cost of fund-based lending rates (MCLR) by 5-20 basis points (bps) across tenors, with effect from August 12.

Accordingly, the overnight MCLR now stands at 6.85 per cent, up 5 bps; one-month MCLR has been increased by 20 bps to 7.40 per cent; three-month MCLR has been hiked by 10 bps to 7.45 per cent; six-month MCLR is up 10 bps to 7.55 per cent; and one-year MCLR is up 5 bps to 7.70 per cent.

The interest rate hike comes