After UCO Bank, Canara Bank and Bank of Baroda increase interest rates from August 12

Public sector banks such as Bank of Baroda, Canara Bank and UCO Bank have increased their marginal cost of funds lending rates (MCLR) at different tenors, which will result in higher costs for consumer borrowing.

Lending rate based on the marginal cost of funds (MCLR) is the minimum lending rate below which a bank cannot lend to its customers.

This comes after Reserve Bank of Indias (RBI) decided to maintain the benchmark rate interest rate at 6.50%.

The revised rates for Bank of Baroda and Canara Bank It will come into force on August 12. UCO Bank has increased the loan rate for specific terms, effective August 10, 2024.

Canara Bank revised its rates

In the first quarter of FY25, Canara Bank’s standalone net profit increased by 10.5 per cent year-on-year to ₹3,905 crore. The bank reported a net profit of Rs. ₹3,535 crore in the same quarter of the previous year. Net interest income (NII) increased by 6 per cent year-on-year to Rs. ₹9,166 since ₹8,666 crore in the previous year.

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Thursday, August 8, kept policy rates unchanged at 6.5 per cent, maintaining the status quo.

The MPC continued with the policy stance of “withdrawing from expansionary monetary policy” despite highlighting good economic growth and signs of slowing inflation. The standing deposit facility (SDF) rate remains at 6.25%, and the marginal standing facility (MSF) rate and the bank rate will remain at 6.75%.