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Key Points

Bank of Baroda has reduced its repo-linked lending rate by 50 basis points, aligning with the RBI's latest policy decision. The new rate of 8.15% aims to make borrowing more affordable for consumers and businesses. RBI Governor Sanjay Malhotra attributed the cut to softening inflation and stable economic indicators. This move is expected to boost loan demand across housing, automotive, and business sectors.

Key Points: Bank of Baroda Cuts Repo-Linked Rates After RBI Policy Move

  • Bank of Baroda slashes repo-linked lending rate to 8.15%
  • Move follows RBI's 50 bps policy rate reduction
  • Cheaper loans expected for home, car, and business borrowers
  • Inflation control cited as key reason for rate cuts
2 min read

Bank of Baroda reduces repo-linked interest rates following RBI footstep

Bank of Baroda reduces lending rates by 50 bps following RBI's repo rate cut, making loans cheaper for homebuyers and businesses.

"The reason for repo cut is that inflation softened, near-term and medium-term alignment is within RBI range. – RBI Governor Sanjay Malhotra"

New Delhi, June 8

Bank of Baroda (Bank), one of India's leading public sector banks, has announced the reduction in its Repo Linked Lending Rate by 50 basis points following the policy rate cut announced by the Reserve Bank of India.

This move will make borrowing cheaper, which can encourage more people to take loans for homes, cars, or businesses.

The revised rates came into effect from June 7, the public sector bank said in a statement. With this the Bank's Repo Linked Lending Rate now stands at 8.15 per cent. Several banks have reduced the interest rates as per the publically available information.

The move came after the Monetary Policy Committee of Reserve Bank of India on Friday announced to reduce the policy interest rate by 50 basis point, to 5.5 per cent.

Speaking after the MPC decision, RBI Governor Sanjay Malhotra mentioned that the reason for repo cut is that the inflation softened, near-term and medium-term alignment is within RBI range, and food inflation remains soft.

Consequently, the Standing Deposit Facility Rate, which is the SDF Rate, shall stand adjusted to 5.25 per cent, and the Marginal Standing Facility MSF Rate and the Bank Rate shall stand adjusted to 5.75 per cent.

Founded on 20th July, 1908 by Sir Maharaja Sayajirao Gaekwad III, Bank of Baroda is one of the leading commercial banks in India. At 63.97 per cent stake, it is majorly owned by the Government of India.

The Bank serves its global customer base of over 165 million through around 60,000 touch points spread across 17 countries in five continents and through its various digital banking platforms, which provide all banking products and services in a seamless and hassle-free manner.

The Bank's vision matches the aspirations of its diverse clientele base and seeks to instil a sense of trust and security in all their dealings with the Bank.

- ANI

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Reader Comments

R
Rahul K.
This is great news for home buyers! I've been waiting for rates to come down before taking a home loan. Hopefully other banks will follow suit quickly. Bank of Baroda leading the way as always 🇮🇳
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Priya M.
Good move but banks should also reduce deposit rates proportionately. As a senior citizen depending on fixed deposits, my monthly interest income has been decreasing with every rate cut 😔
A
Amit S.
Finally some relief for MSMEs! Lower interest rates mean we can expand our small business without worrying too much about EMI burden. Kudos to RBI and BoB for this timely decision 👏
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Neha T.
I hope this rate cut actually reaches common people. Sometimes banks announce reductions but processing fees and other charges eat up the benefits. Transparency is key!
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Vikram J.
As someone who took a car loan last month, I'm feeling a bit cheated! But happy for future borrowers. Maybe I should ask my bank for rate revision under the new regime? Anyone tried this?
S
Sanjay P.
RBI's inflation control seems to be working well. Softening inflation leading to rate cuts is exactly how the system should function. More power to our economic institutions!

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