The stock market news confirms that the Bank of Baroda, a state-run bank, has declared a rise of 5 basis points in its MCLR or marginal cost of funds-based lending rates in different tenors. The bank also announced when will be the new rate effective from. The date they have declared to make the same effective from is 7th June. The one-year MCLR rate or minimum lending rate which was previously 8.40 percent has been increased to 8.45 percent, which is a clear 5 basis point increase.
As per the note shared in the press, the statement reads, The increase is attributed to higher cost of funds and rising interest rate scenario.
It is also important to understand that the one-year marginal cost of funds-based lending rate at 8.45 percent will hold true in all cases. It will not depend on the total home loan amount and another thing to note is that it will be available for a term of up to 30 years. This news is confirmed by the press release.
For the overnight tenor, the revised rate is 7.95 percent. For the one month tenor, the rate has been revised to 8 percent. Also, for the three months tenor the given revised rate will be 8.10 percent. And lastly, the for a six month tenor, the rate has been revised to 8.30 percent. Also, if we drill down and watch the lender’s base rate, it is at 9.15 percent. As on June 15th, the Bank of Baroda share price stands at 131.35 INR. Previous close price was 135.15 INR.
Bank of Baroda is an Indian state-owned International banking and financial services company which is headquartered in Vadodara, Gujarat with its corporate office in Mumbai. The bank is ranked 1145 on Forbes Global 2000 list as per the data of year 2017. The Bank of Baroda has a total asset of more than INR 3.58 trillion which makes it country’s 2nd biggest bank in the assets category. It has a network of 5538 branches in the nation and abroad, and it also has around 10441 ATMs, again as per the data of 2017.
The Government of India nationalized the bank along with as many as 13 other major commercial banks of the country in the year 1969. The Government of India also designated Bank of Baroda as a profit-making public sector undertaking or PSU. The financial services portfolio of the bank includes initial public offerings, private placement of debts, corporate restructuring, business valuation, mergers and acquisition, project appraisal, loan syndication, institutional equity research, and brokerage.
As per another latest news on BOB, Bank of Baroda has put 30 impaired loans of worth more than INR 7,400 crore which includes the loans to Binani Cement, Essar Steel, and Bhushan Power. These are undergoing bankruptcy hearings. It may take some more time get the resolutions because they are stalled in litigations.