Bank of Baroda Keeps Lending Rates Unchanged, Stock Edges Up

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AuthorIshaan Verma|Published at:
Bank of Baroda Keeps Lending Rates Unchanged, Stock Edges Up
Overview

Bank of Baroda will maintain its Marginal Cost of Funds based Lending Rate (MCLR) at 7.80% for the overnight tenure from January 12, 2026. The six-month rate will see a marginal decrease to 8.50%. This decision underscores a stable lending rate policy for the coming period, influencing consumer and corporate borrowing costs. The bank's shares closed up 0.32%.

MCLR Rates Hold Steady

Bank of Baroda announced on January 9, 2026, that its marginal cost of funds based lending rate (MCLR) will largely remain unchanged for various tenures, effective January 12. The benchmark overnight MCLR is set to continue at 7.80%, signaling a stable approach to borrowing costs for customers.

Other key tenures also hold steady, including the one-month rate at 7.90% and the three-month rate at 8.15%. The one-year MCLR remains at 8.75%. A marginal adjustment is noted for the six-month MCLR, which will see a slight decrease to 8.50% from the previous 8.60%. These rates are critical benchmarks for corporate and retail loan pricing.

Financial Performance Snapshot

The bank's decision comes after reporting its financial results for the second quarter of the fiscal year in October 2025. Net profit declined by 8% year-on-year to ₹4,809 crore, despite a 3% growth in net interest income. Asset quality showed improvement, with gross non-performing assets falling to 2.16% and net NPAs easing to 0.57% sequentially.

Broader Economic and Operational Context

Bank of Baroda also facilitated a $500 million foreign currency loan for ONGC Videsh subsidiary OOIL at GIFT City IFSC on December 17, 2025, to support overseas operations. This announcement occurs amid broader economic developments, such as a January 2, 2026, report highlighting Andhra Pradesh as India's top investment destination, capturing 25.3% of proposed capital in the first nine months of 2025.

Market Movement

In market trading on January 9, Bank of Baroda's share price closed at ₹300.50 on the National Stock Exchange, marking a gain of ₹0.95, or 0.32%.

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