Bank of Baroda has announced its revised marginal cost of funds based lending rate (MCLR) structure effective January 12, 2026, maintaining the overnight rate at 7.80% while making selective adjustments across different tenures. The announcement was communicated through a regulatory filing to BSE and NSE on January 9, 2026.

MCLR Rate Structure

The bank's MCLR rates across various tenures reflect a mixed approach to rate adjustments:

The six-month MCLR experienced the only adjustment, declining by 10 basis points from 8.60% to 8.50%, while all other tenure rates remained stable.

Recent Financial Performance

In October 2025, Bank of Baroda reported its second quarter fiscal year results, showing net profit of ₹4,809 crore, representing an 8% decline from the previous period. Despite the profit decline, the bank achieved 3% growth in net interest income during the quarter.

The bank demonstrated improved asset quality with gross non-performing assets falling to 2.16% from 2.28% sequentially, while net NPAs eased to 0.57% from 0.60%.

Strategic Business Developments

Bank of Baroda has been actively involved in significant financing initiatives. On December 17, 2025, the bank underwrote a $500 million foreign currency loan for OOIL, the ONGC Videsh subsidiary, at GIFT City IFSC to support global expansion and overseas operations.

Additionally, in a report dated January 2, 2026, Bank of Baroda highlighted investment trends showing Andhra Pradesh emerging as India's top investment destination, capturing 25.3% of proposed capital in the first nine months of 2025. The analysis revealed that 51.2% of India's total proposed capital investment is concentrated in three states: Andhra Pradesh, Odisha, and Maharashtra.

Market Performance

Bank of Baroda's share price closed at ₹300.50 on NSE on January 9, 2026, gaining ₹0.95 or 0.32% for the trading session. The MCLR announcement follows the bank's continued focus on balancing competitive lending rates with maintaining healthy margins across its loan portfolio.

Bank of Baroda has received initial approval from the Reserve Bank of India (RBI) to transfer its Primary Dealer license to a fully owned subsidiary. This development represents a significant step in the public sector bank's strategic restructuring initiatives.

Regulatory Approval Status

The RBI's initial approval marks the first phase of the license transfer process. However, the bank has indicated that additional regulatory clearances are still pending before the transfer can be completed.

Strategic Implications

The transfer of the Primary Dealer license to a subsidiary structure could enable Bank of Baroda to optimize its operations and enhance focus on core banking activities. Primary Dealers play a crucial role in government securities markets, acting as intermediaries between the RBI and other market participants.

Next Steps

While the initial RBI approval represents progress, the bank must secure additional regulatory clearances before the license transfer becomes effective. The completion timeline will depend on the processing of these pending approvals by relevant regulatory authorities.

This organizational restructuring initiative demonstrates Bank of Baroda's commitment to streamlining its operations and aligning its business structure with evolving market requirements.