BoB hikes MCLR, BoM cuts the same
Bank of Baroda on Monday increased the marginal cost of funds-based lending rates (MCLR) on some tenures by 10-15 basis points (bps), effective July 12. BoB has increased its one-year MCLR by 15 bps to 7.65%, the lender said in an exchange filing.
The increase in the MCLR by BoB for July was steeper compared with June, when the bank had raised the one-year MCLR by 10 bps. The bank has kept overnight and one-month MCLR unchanged at 6.80% and 7.20% respectively. The 3-month and 6-month MCLR have been raised by 10 bps each to 7.35% and 7.45%, respectively.
Meanwhile, Bank of Maharashtra reduced its MCLR by 20-35 bps across tenures. The bank cut its one-year MCLR by 20 bps to 7.50% in July from 7.70% in the previous month. The bank’s one-year MCLR for June was one of the highest among public sector banks, according to RBI data. The bank’s shorter duration MCLRs for July are in the range of 6.90% to 7.40%.
In FY22, the bank’s deposits stood at Rs 2.02 trillion while current account, savings account (CASA) ratio as of March 31 improved to 58% compared to 54% a year ago. Cost of deposits declined to 3.61% in Q4FY22 from 3.97% in the same quarter last year.
The move comes at the time when most banks have been increasing their MCLR after the Reserve Bank of India initiated a rising policy interest rate cycle.
Earlier, HDFC Bank and ICICI Bank hiked MCLR by 20 bps each.