Now Reading: Bank of Baroda, Canara Bank raise lending rates by up to 10 bps
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Bank of Baroda, Canara Bank raise lending rates by up to 10 bps
Bank of Baroda and Canara Bank have raised their Marginal Cost of Funds Based Lending Rates (MCLR) by up to 10 basis points on select tenures, effective August 12, 2026. Canara Bank…
The Story in Brief
Bank of Baroda and Canara Bank have raised their Marginal Cost of Funds Based Lending Rates (MCLR) by up to 10 basis points on select tenures, effective August 12, 2026. Canara Bank increased rates by 5 bps across some tenures, bringing its range to 7.95-9.10 per cent. BoB raised one tenure by 10 bps, pushing its range to 7.85-8.75 per cent.
The move comes after the RBI held the repo rate at 5.25 per cent. Notably, MCLR-linked loans do not reprice immediately; reset periods are set in the contract and can be up to one year. HDFC Bank recently cut its MCLR by 5 bps on most tenures, diverging from the public sector banks.
The Indian Opinion
The usual panic over EMI hikes ignores a key detail: the rate increase applies only to new loans or at the next reset date, which could be months away for existing borrowers. With the RBI holding the repo rate at 5.25 per cent and HDFC Bank actually cutting its MCLR by 5 bps, this is not a uniform trend. Watch whether other large lenders follow Canara and BoB, or if competition keeps rates in check.
Source: timesnownews.com
This story was synthesised by AI from the source linked above.
