Bank of Baroda- Public sector Bank of Baroda on Saturday announced a reduction of 50 basis points in its Baroda Repo Linked Lending Rate (BRLLR). Now this rate has come down from 8.65% to 8.15%. This change will be effective from 7 June 2025. The bank has taken this step after RBI reduced the repo rate from 6.00% to 5.50% on Friday.
According to the stock exchange filing of Bank of Baroda, this change in BRLLR has been made under SEBI Listing Regulation. However, the mark-up component included in BRLLR will remain the same as before at 2.65%.
What does reducing BRLLR mean?
Reducing the BRLLR (Baroda Repo Linked Lending Rate) means that the bank will now give loans to its customers at cheaper interest rates, because this rate is directly linked to the repo rate of RBI.
As soon as RBI reduced the repo rate, Bank of Baroda also reduced the BRLLR from 8.65% to 8.15%. This may reduce the EMI of home loans, car loans and personal loans. However, this also increases the possibility of reduction in interest on fixed deposits.
Other banks can also make loans cheaper
Along with the repo rate cut of 50 basis points on Friday, the RBI also cut the cash reserve ratio (CRR) by 100 basis points to 3%. A total of 100 bps have been cut since February 2025. This is considered to be the most aggressive monetary easing in recent years. With this, other public and private sector banks can also provide relief to the public by reducing their interest rates. Bank of Baroda’s net profit in the March 2025 quarter stood at Rs 5,048 crore, up 3.2% from the same quarter last year.