Bank of Baroda reduces MCLR of various tenors by 0.05%

NEW DELHI : Baroda State Bank announced today that it has reduced the benchmark one-year marginal cost of funds (MCLR) rate by 0.05%.

The bank approved the MCLR revision with effect from June 12, 2021, the lender said in a regulatory filing. The MCLR for the period of one year is revised to 7.35%.

Among other things, the MCLR tenors at six and three months have also been reduced by 0.05% each to 7.20% and 7.10%, respectively.

Bank of Baroda stock closed up 3.54% at ₹84.75 each on BSE.

Meanwhile, Bank of Baroda will conduct an electronic auction of up to 46 NPA accounts later this month to collect contributions from ₹597.41 crores. 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 a cash basis. 100% cash, for which the electronic auction will take place on June 21, 2021. Major NPA accounts for sale include Meena Jewels Export & Meena Jewelers Export ( ₹60.76 crore); Crystal Cable Industries ( ₹57.49 crore); JR Foods Ltd. ( ₹41.60 crores); Shree Raghuvanshi fibers ( ₹27.38 crores); Kaneri Agro Industries ( ₹24.69 crore); Tubinox man ( ₹24.28 crore) and Aryans Educational and Charitable Trust ( ₹20.79 crores). The deadline for submitting expressions of interest is June 19, the bank said, adding that the completion of the due diligence will take place on the same day.

“The hours of the electronic auctions will be from 11:30 am to 12:30 pm with an unlimited extension of 5 minutes in the event of an increase in the amount by the bidders. The incremental amount will be a multiple of ₹10 lakh, ”Bank of Baroda said. Regarding exports of Rahima leather, based in Chennai, against which there is an outstanding amount of ₹9.13 crore, Bank of Baroda said it received an ECGC claim from ₹1.18 crore. This account will be kept by the bank and will not pass to ARC / NBFC / bank / FIs, he said.

The tenderer must also provide a sworn statement stating that he is “in no way linked or acting on behalf of or in concert or on behalf of any of the accounts or its promoters, including the promoter’s family” , in accordance with the provisions of the Insolvency and Bankruptcy Code (IBC), 2016, he said. The bank has stated that any ECGC / CGTMSE complaint received or receivable on any of the accounts in connection with the sale will be held by it and will not be forwarded to ARCs / banks / NBFC / IFs. The Export Credit Guarantee Corporation (ECGC) is a government agency that provides export credit insurance to Indian exporters.

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