Bank of Baroda Keeps One-Year MCLR Steady at 8.75% Amid Stable Rate Outlook

Bank of Baroda (BoB) has announced that its one-year MCLR remains unchanged at 8.75%, effective December 2025. The decision indicates the lender’s stable cost of funds and aligns with the broader trend among major commercial banks opting to hold lending rates steady amid a pause in the RBI’s policy repo rate.

The one-year MCLR serves as the benchmark for most consumer and corporate loans, including home and auto loans. By maintaining rates, BoB signals comfort with its liquidity position and funding margins while balancing the need to remain competitive in the retail and SME lending markets.

Key Highlights:

One-year MCLR: Unchanged at 8.75%.

Shorter-tenor MCLRs: Also retained at existing levels.

Rationale: Stable funding costs and steady policy environment.

Impact: Lending rates for consumers remain unchanged, ensuring predictable EMIs.

Sector context: Most banks are maintaining current MCLR levels amid RBI’s steady stance on policy rates.

Source: Bank of Baroda exchange filing; Reserve Bank of India data.