State-run Bank of Baroda also has lowered its marginal cost of funds-based lending rates, or MCLR, by up to 20 basis points across various tenors, effective Dec. 12, following its peers like State Bank of India, HDFC Bank Ltd. and Bank of India.
The public sector lender has reduced its one-year MCLR, to which all retail loans are linked to, by 5 basis points to 8.25 percent.
Bank of Baroda's overnight and one-month rates are down 20 basis points to 7.65 percent now. It has also reduced by 10 basis points its three-month and six-month MCLR to 7.80 percent and 8.10 percent, respectively.
Bank of Baroda's MCLR cut comes even as India's Monetary Policy Committee maintained status quo on repo rate—after five successive rate cuts.
On Monday, while SBI cut its one-year MCLR by 10 basis points to 7.90 percent, HDFC Bank effected a 15-basis-point cut to 8.15 percent, and Bank of India reduced the same by 20 basis points to 8.20 percent.
On Tuesday, Bank of Baroda shares fell 1.29 percent to Rs 95.70 apiece on the NSE while the benchmark Nifty 50 shed 0.63 percent to end the day at 11,861.90 points.
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