Bank of Baroda (BoB), one of the largest Public Sector Lenders, has reviewed its benchmark lending rates i.e. marginal cost of funds based lending rates [MCLR] across various tenors.

MCLR has been reviewed at 5 BPS above existing level w.e.f. June 07, 2018. The bank's 1-year MCLR will be 8.45%, which is competitive as per the current market scenario. For all other tenors: overnight, one month, three months and six months rates will be 7.95%, 8.00%, 8.10% and 8.30%, respectively.

The increase is attributed to higher cost of fund and rising interest rate scenario. Lately, several banks including SBI, ICICI, PNB, Union Bank etc. have raised their MCLR rates.

Bank of Baroda said it does not add any mark-up on its MCLR for its best rated home loan borrowers. Bank of Baroda is a customer centric and most competitive in terms of interest rate in the industry. The bank offers home loans at one year MCLR to its best-rated customers. One-year MCLR i.e. 8.45% is applicable irrespective of the total home loan amount and is available for a tenure up to 30 years.

Shares of the bank declined Rs 3.85, or 2.92%, to settle at Rs 128.05. The total volume of shares traded was 2,081,286 at the BSE (Tuesday).