Mumbai: Bank of Baroda has reduced its lending rate by 50 basis points (bps) after the Reserve Bank of India (RBI) lowered the repo rate. The new Baroda Repo Linked Lending Rate (BRLLR) is now 8.15 percent, down from 8.65 percent. This change is effective from June 7, 2025.
The bank said this cut is because the RBI has reduced the repo rate from 6.00 percent to 5.50 percent. The mark-up charged by the bank, which is 2.65 percent, remains the same. The change in BRLLR matches the cut in the repo rate.
Bank of Baroda informed stock exchanges about this change, following SEBI rules. The repo rate is the rate at which the RBI lends money to banks. A lower repo rate means loans can become cheaper for customers.
Just a day earlier, the RBI had also reduced the Cash Reserve Ratio (CRR) by 100 bps to 3 percent. The CRR is the minimum cash banks must keep with the RBI. This move, along with the rate cut, shows the RBI is trying to support growth. Since February, the repo rate has fallen by a total of 100 bps.
In its financial results for the January-March 2025 quarter, Bank of Baroda posted a net profit of Rs 5,048 crore. This was a 3.2 percent rise compared to the same period last year and higher than market expectations.
Other income grew by 24 percent year-on-year to Rs 5,210 crore. However, the bank's Net Interest Income (NII) fell 6.6 percent to Rs 11,019 crore.
The bank also improved its asset quality. Gross NPA dropped to 2.26 percent from 2.43 percent in the previous quarter. Net NPA was slightly better at 0.58 percent, down from 0.59 percent.
