RBI Repo Rate Cut: Now whenever there is talk of taking loans from banks, the first question that comes up is what is the interest rate? Now the heart will be happy to hear the answer to this question, especially if you are a customer of Bank of Baroda or are thinking of taking a loan from there. Because the bank has given a big relief to its customers by reducing the loan rates.

What happened was that recently RBI has reduced its repo rate – that is, the rate at which RBI gives loans to banks. When RBI reduces this rate, it directly affects the banks and then on common customers like us. Bank of Baroda also capitalized on this opportunity and reduced its repo linked lending rate i.e. BRLLR by 0.50% i.e. 50 basis points.

Earlier this rate was 8.65% but now it has come down to 8.15%. And this change has come into effect from 7 June 2025. That is, if you have taken or are going to take a home loan, personal loan or auto loan from Bank of Baroda, then your EMI can be less than before.

Effect of RBI’s move

When RBI reduced its repo rate from 6.00% to 5.50% on Friday, it showed great leniency in the country’s monetary policy. Along with this, RBI has also reduced CRR i.e. Cash Reserve Ratio by 100 basis points to 3%. It is also being called the most aggressive monetary relief in recent years.

This means clearly – the bank now has more money to give loans and they are getting this money at cheaper rates. So when the bank gets cheap money, they will also give cheap loans to you i.e. the customer. Bank of Baroda has started this, and it is expected that the rest of the government and private banks will also give relief to the general public by reducing the interest rates.

Strong performance of Bank of Baroda

Now talking about the latest quarterly results of the bank, the bank has performed well here too. In the quarter of March 2025, the bank has made a net profit of ₹ 5,048 crore, which is 3.2% more than the same quarter last year.

This figure is also better than the market expectations. What CNBC-TV18 had estimated was around ₹ 4,800 crore, but Bank of Baroda has performed even above that. The biggest reason for this profit was the tremendous 24% increase in the bank’s Other Income, which reached ₹ 5,210 crore.

However, while on one hand the profit has increased, there has been a slight decline in Net Interest Income i.e. NII. This figure stood at ₹ 11,019 crore, while it was expected that it would be around ₹ 11,678 crore. This means that the bank earned a little less from its core loans, but it made up for the loss through the rest of the income.

Improvement in NPA 

Another big thing which is good news for both customers and investors – the NPA situation of the bank has improved. That is, the number of loans that get sunk or whose money is stuck is decreasing. The gross NPA of the bank has come down from 2.43% in the last quarter to 2.26% now. At the same time, the net NPA has also come down slightly from 0.59% to 0.58%.

This clearly means – the bank is now giving loans in a more secure way and the situation of repaying the loan has also improved from the customers.

What is the benefit to the common people

If you are a common customer, planning to buy a house or thinking of taking a personal loan, then this can be a golden opportunity for you. Reduction in interest rates means direct relief in your EMI. Now you will not have to pay as much money as you used to earlier.

People from all walks of life can take advantage of this – salaried, businessmen, retired or young people who are taking a loan for the first time. So if you also want to take advantage of cheap loans, then contacting Bank of Baroda can be a wise step.