Bank of Baroda revises MCLR effective June 12, 2025

State-owned Bank of Baroda Ltd (BoB) on Tuesday (June 10) announced a revision in its marginal cost of funds based lending rate (MCLR) effective June 12, 2025. The bank has revised its rates for various tenures, which may impact the interest rates on loans linked to MCLR.

The revised rates are as follows:

• The overnight MCLR remains unchanged at 8.15%.
• The one-month MCLR has been revised to 8.30% from 8.35%.
• The three-month MCLR has been revised to 8.50% from 8.55%.
• The six-month MCLR has been revised to 8.75% from 8.80%.
• The one-year MCLR has been revised to 8.90% from 8.95%.

The revision in MCLR may benefit borrowers with loans linked to MCLR, as they may be eligible for lower interest rates on home loans, personal loans, and business loans.

Also Read: RBI’s repo rate cut effect: These banks have slashed lending rates for customers

Last week, the Reserve Bank of India (RBI) cut interest rates by a larger-than-expected 50 basis points and unexpectedly reduced the cash reserve ratio for banks to make more money available to lend in a bid to boost the economy.

The RBI’s six-member monetary policy committee, headed by Governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5%. It also cut the cash reserve ratio by 100 basis points to 3%, adding ₹2.5 lakh crore to already surplus liquidity in the banking system.

With the latest reduction, the RBI has now cut interest rates by a total of 100 basis points in 2025, starting with a quarter-point reduction in February — the first cut since May 2020 — and another similar-sized cut in April.

Also Read: Bank of Baroda lowers mandatory positive pay limit in phases to ₹2 lakh

Shares of Bank of Baroda Ltd ended at ₹246.95, down by ₹1.10, or 0.44%, on the BSE.