Bank of Baroda Maintains MCLR Rates After Latest Review; No Change in Lending Benchmarks
State-owned lender Bank of Baroda has announced that it will retain its existing Marginal Cost of Funds Based Lending Rate (MCLR) across all tenors following its latest periodic review. The unchanged rate structure will come into effect from March 12, 2026.
Periodic Review of Benchmark Lending Rates
The bank shared the update through a regulatory disclosure to stock exchanges in accordance with the guidelines under the SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations.
The Marginal Cost of Funds Based Lending Rate (MCLR) acts as an internal benchmark used by banks to determine interest rates for various lending products. Financial institutions review these rates regularly to account for factors such as the cost of funds, liquidity levels, and overall market conditions.
After completing its latest assessment, Bank of Baroda decided not to revise the current lending benchmarks, keeping all MCLR rates steady.
Bank of Baroda MCLR Rates (Effective March 12, 2026)
The bank’s MCLR structure across key tenors will remain unchanged:
- Overnight MCLR: 7.80%
- One-Month MCLR: 7.90%
- Three-Month MCLR: 8.15%
- Six-Month MCLR: 8.45%
- One-Year MCLR: 8.70%
Among these, the one-year MCLR holds particular significance as it typically serves as the benchmark for several retail lending products, including home loans and certain business loans.
Impact on Borrowers
MCLR represents the minimum lending rate at which banks generally extend loans to customers, except in special circumstances allowed by regulators.
Since Bank of Baroda has kept the benchmark unchanged, borrowers with loans linked to the bank’s MCLR will not experience an immediate change in interest rates. However, the actual impact may vary depending on the interest rate reset cycle mentioned in individual loan agreements.
Key Takeaway
Bank of Baroda’s latest review confirms that all MCLR-linked lending rates will remain unchanged from March 12, 2026. With the one-year MCLR continuing at 8.70%, borrowers whose loans are tied to this benchmark are unlikely to see any immediate adjustment in their borrowing costs.
Disclaimer
This article is based on publicly available information and official statements. The content is intended for informational purposes only. The publication does not independently verify third-party claims or geopolitical assertions mentioned in international developments.