Bank of Baroda Lowers Lending Rate by 50 Basis Points After RBI Repo Cut
Bank of Baroda has reduced its lending rate linked to the RBI’s repo rate by 50 basis points. The Baroda Repo Linked Lending Rate (BRLLR) now stands at 8.15%, effective from June 7, 2025. This move comes right after the Reserve Bank of India lowered the repo rate from 6% to 5.5%.
The bank clarified in a stock exchange filing that while the repo rate has been cut, the mark-up component of 2.65% remains unchanged. As a result, the overall lending rate has dropped from 8.65% to 8.15%, making loans slightly more affordable for borrowers.
This is in line with the RBI’s recent policy steps. On Friday, the central bank had reduced the repo rate by 50 basis points and the Cash Reserve Ratio (CRR) by 100 basis points, signalling a more supportive approach to growth amid easing inflation.
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Bank of Baroda also shared its latest quarterly results. The public sector lender posted a net profit of Rs 5,048 crore, up 3.2% from the same quarter last year. The figure beat market estimates, thanks in part to a 24% rise in other income, which touched Rs 5,210 crore.
However, the bank’s core income, or Net Interest Income (NII), dropped by 6.6% year-on-year to Rs 11,019 crore. Gross non-performing assets (NPA) improved to 2.26%, down from 2.43% in the previous quarter, while net NPA stood at 0.58%, slightly better than last quarter’s 0.59%.
With lending rates coming down and asset quality improving, the bank appears to be cautiously optimistic as it moves into the next quarter.
Disclaimer: This post is for general informational purposes only. It does not constitute financial advice. Please consult a qualified professional before making financial decisions.
