Post by : Jyoti Gupta

Photo : Reuters

On Saturday, June 7, 2025, Bank of Baroda, a government-owned bank, said it had reduced its Baroda Repo Linked Lending Rate (BRLLR) by 0.50%. The new rate is now 8.15%, starting from June 7, 2025.

This change happened because the Reserve Bank of India (RBI) also lowered its main interest rate, called the repo rate, from 6.00% to 5.50%. The extra charge added by the bank (called the mark-up) is still the same at 2.65%. Because of this, the bank’s overall loan interest rate came down from 8.65% to 8.15%.

In a notice to the stock market, the bank said:
"According to SEBI rules, we are informing you that our lending rate has been changed from June 7, 2025."

Just a day before this, RBI also reduced the Cash Reserve Ratio (CRR) by 1% to 3%. This means banks now have to keep less money with the RBI. The central bank has cut the repo rate by 1% since February 2025, which is one of the fastest rate cuts in recent years.

Bank of Baroda's Performance in the Last Quarter

The bank made a profit of ₹5,048 crore in the last quarter, which is 3.2% more than the same time last year. This was higher than experts' expectations of ₹4,801.7 crore.

One big reason for the higher profit was the increase in “other income,” which grew by 24% compared to last year and reached ₹5,210 crore.

However, the bank’s Net Interest Income (the money it earns from loans) dropped by 6.6% to ₹11,019 crore. Experts had expected ₹11,678 crore.