Bank of Baroda New MCLR Effective January 12: 6 Month MCLR Revised to 8.50%

Bank of Baroda has announced that it will maintain its marginal cost of funds-based lending rate (MCLR) for the overnight tenure at 7.80%, effective January 12, 2026. On January 9, the one-month MCLR remains unchanged at 7.90%, while the three-month rate continues at 8.15%. The six-month MCLR has been marginally reduced to 8.50% from 8.60%, whereas the one-year rate has been retained at 8.75%.

The rate decision comes against the backdrop of evolving trends in India’s investment environment. In a report released on January 2, 2026, Bank of Baroda noted that Andhra Pradesh has emerged as the leading investment destination in the country, accounting for 25.3% of total proposed capital investments during the first nine months of 2025. The report also highlighted that more than half of India’s proposed capital expenditure, 51.2% is concentrated across just three states: Andhra Pradesh, Odisha, and Maharashtra.

December 2025 Business Update

On the business front, the Bank of Baroda reported robust growth in its global operations. As of December 31, 2025, Bank of Baroda’s global business expanded by 12.22% year-on-year to ₹28.91 trillion. Global advances rose by 14.57% to ₹13.44 trillion, while global deposits increased by 10.25% to ₹15.47 trillion over the same period.

Also Read: UCO Bank Reduces MCLR: Relief for Home Loan and Personal Loan Borrowers 

BOB Q2FY26 Financial Performance

Earlier, in October 2025, the lender disclosed its financial performance for the second quarter of the fiscal year. Net profit declined by 8% year-on-year to ₹4,809 crore, even as net interest income recorded a modest 3% growth. The bank also reported an improvement in asset quality, with gross non-performing assets easing to 2.16% from 2.28% in the previous quarter, and net NPAs declining to 0.57% from 0.60%.

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