Bank of Baroda raises interest rate by 0.1%

State-owned Bank of Baroda has hiked its MCLR by 0.1 per cent across various tenures effective Wednesday, making home and auto loans expensive.

The interest rate for different categories of borrowers are pegged at the marginal cost of funds based lending rate (MCLR).

"MCLR has been reviewed at 10 BPS above existing level w.e.f. November 7, 2018," the bank said in a statement.

The bank's one-year MCLR will be 8.65 per cent, which is competitive as per the current market scenario, it said.

For all other tenors -- overnight, one month, three months and six months -- rates are 8.15 per cent, 8.20 per cent, 8.30 per cent and 8.50 per cent, respectively.

The bank further said it does not add any mark-up on its MCLR for its best-rated home loan borrowers.

One-year MCLR, that is 8.65 per cent, is applicable irrespective of the total home loan amount and is available for a tenure of up to 30 years, it added.

Bank of Baroda had posted an increase of 19.7 per cent in September quarter profit at Rs 425.38 crore as it marginally improved its NPA (non-performing assets) position.

Its profit stood at Rs 355.36 crore in the July-September quarter of 2017-18.

The scrip of the bank closed at Rs 110.5 apiece on the BSE, down 0.76 per cent.