Baroda, one of India’s leading public sector banks, announced that its repurchase loan interest rate was reduced by 50 basis points after the Reserve Bank of India announced a reduction in policy interest rates.
The move will make borrowing cheaper, which can encourage more people to buy a loan from a home, a car or a business.
The revised interest rate will take effect on June 7, the public sector bank said in a statement. This way, the bank’s repurchase loan interest rate is now 8.15%.
Several banks have lowered interest rates, according to publicly available information.
The move comes after the Reserve Bank of India’s Monetary Policy Committee announced on Friday that it would lower the policy interest rate by 50 basis points to 5.5%.
After the MPC decision, RBI Governor Sanjay Malhotra mentioned that the reason for the cutback of repos was softened inflation, with near- and medium-term consistency within the RBI range, while food inflation remained soft.
Therefore, the conventional deposit facility rate (i.e., the SDF rate) should be adjusted to 5.25%, while the marginal permanent facility MSF rate and bank rate should be set to 5.75%.
The Baroda Bank was established on July 20, 1908 by Maharaja Sayajirao Gaekwad III and is one of the leading commercial banks in India. Its shares are 63.97%, mainly owned by the Indian government.
The bank provides over 60,000 touchpoints to its global customer base over $165 million, spread across 17 countries on five continents and through its various digital banking platforms that deliver all banking products and services in a seamless and worry-free way.
The bank’s vision matches its desire to diversify its client base and seeks to instill a sense of trust and security in all transactions with the bank.
