RBI Repo Rate Cut: Government sector Bank of Baroda on Saturday announced a 50 basis point cut in its Baroda Repo Linked Lending Rate (BRLR). Now this rate has come down from 8.65% to 8.15%. This change will be effective from 7 June 2025. The RBI on Friday reduced the repo rate from 6.00% to 5.50%, after which the bank took this step.
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 2.65% as before.
What does it mean to reduce brllr?
BRLLR (Baroda Repo Linked lending Rate) means that the bank will now give loans to its customers at cheap interest, as this rate is directly connected to the repo rate of RBI.
As soon as RBI reduced the repo rate, Bank of Baroda also reduced BRLR from 8.65% to 8.15%. This can reduce the EMI of home loan, car loan and personal loan. However, this also increases the possibility of cutting interest on fixed deposits.
Other banks can also make loans cheaper
The RBI on Friday cut a 50 -basis point repo rate reduction in the cash reserve ratio (CRR) to 100 basis points to 3%. A total of 100 BPS has been cut since February 2025. This is considered to be the most aggressive monetary relaxation of recent years.
With this, government and other private sector banks can also give relief to the public by cutting their interest rates.
Bank of Baroda quarterly results
Bank of Baroda’s net profit was ₹ 5,048 crore in the March 2025 quarter, which is 3.2% higher than the same quarter of the previous year. This figure is better than the estimates of CNBC-TV18 ₹ 4,801.7 crore. This increase in profits came mainly due to an increase of 24% in other income, which was ₹ 5,210 crore.
However, the main income of the bank, ie Net Interest Income (NII), recorded a decline of 6.6% and it declined to ₹ 11,019 crore. The CNBC-TV18 had estimated the NII to be ₹ 11,678 crore.
The bank’s gross NPA has also improved, which declined from 2.43% to 2.26% in the previous quarter, while NET NPA has declined by 0.59% to 0.58%.
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