Home >Industry >Banking >Bank of Baroda cuts MCLR for various tenors by 0.05%

NEW DELHI : State-owned Bank of Baroda today said it has slashed the benchmark one-year marginal cost of funds based lending rate (MCLR) by 0.05%.

The bank has approved the revision in MCLR with effect from June 12, 2021, the lender said in a regulatory filing. The MCLR for one-year tenor stands revised to 7.35%.

Among others, the six-month and three-month tenor MCLRs have also been slashed by 0.05% each to 7.20% and 7.10%, respectively.

Bank of Baroda stock closed 3.54 per cent up at 84.75 apiece on BSE.

Meanwhile, Bank of Baroda will conduct an e-auction of as many as 46 NPA accounts later this month to recover dues of 597.41 crore. The lender, in a notification, said it intends to sell these NPA accounts to asset reconstruction companies (ARCs) / banks / NBFCs or other financial institutions (FIs) on 100 per cent cash basis, for which the e-auction will take place on June 21, 2021. The major NPA accounts put up for sale include Meena Jewels Export & Meena Jewellers Export ( 60.76 crore); Crystal Cable Industries ( 57.49 crore); J R Foods Ltd ( 41.60 crore); Shree Raghuvanshi Fibres ( 27.38 crore); Kaneri Agro Industries ( 24.69 crore); Man Tubinox ( 24.28 crore) and Aryans Educational and Charitable Trust ( 20.79 crore). The last date for submission of expression of interest is June 19, the bank said, adding the completion of due diligence will take place on the same day.

"E-bidding timings will be from 11.30 AM to 12.30 PM with unlimited extension of 5 minutes in case the amount is increased by the bidders. The incremental amount shall be in multiple of 10 lakh," Bank of Baroda said. With respect to Chennai-based Rahima Leather Exports against which there is an outstanding of 9.13 crore, Bank of Baroda said it has received an ECGC claim of 1.18 crore. This account will be retained by the bank and not be passed on to ARC/NBFC/bank/FIs, it said.

Bidder will also have to give an affidavit that they are "in no way connected to or acting on behalf of or in concert or on behalf of any of the accounts or its promoters, including promoter's family", as per the provisions of Insolvency and Bankruptcy Code (IBC), 2016, it said. The bank said any ECGC/CGTMSE claim received or to be received in any of the accounts under the sale will be retained by it and will not be passed on to ARCs/ banks/ NBFCs/ FIs. The Export Credit Guarantee Corporation (ECGC) is a government owned body which provides export credit insurance support to Indian exporters.

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