Mumbai - State-owned Bank of Baroda on Tuesday said it will hike its benchmark marginal cost of funds based lending rate (MCLR) by 5 basis points, across various tenures from June 7.
"The bank's 1-year MCLR will be 8.45%, which is competitive as per the current market scenario," the bank said in a statement.
"For all other tenors: overnight, one month, three months and six months rates will be 7.95%, 8%, 8.10% and 8.30%, respectively."
A basis point is equivalent to 0.01 percentage point.
The lending major attributed the increase in MCLR to higher cost of "fund and rising interest rate scenario".
Last week other lending majors -- SBI, PNB, ICICI Bank -- had hiked their benchmark MCLR.