Mumbai : Bank of Baroda has revised its Baroda Repo Based Lending Rate (BRLLR) upward by 25 basis points to 8.15%, effective October 8, 2026, following the Reserve Bank of India’s decision to increase the policy repo rate.
The state-owned lender raised its BRLLR from 7.90% to 8.15%, with the change reflecting the 25-basis-point increase in the underlying RBI repo rate.
The bank informed the stock exchanges about the revision under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
BRLLR Increased by 25 Basis Points
According to the revised rate structure, Bank of Baroda’s BRLLR will increase by 0.25 percentage points, or 25 basis points.
The revised rates are:Rate ComponentEarlier RateRevised RateChange RBI Repo Rate 5.25% 5.50% +25 bps Bank of Baroda Mark-up 2.65% 2.65% No change BRLLR7.90%8.15%+25 bps
The bank’s 2.65% mark-up has remained unchanged. As a result, the entire 25-basis-point increase in the BRLLR corresponds to the increase in the repo rate.
New Rate Effective October 8
The revised 8.15% BRLLR will come into effect from October 8, 2026.
The BRLLR is linked to the RBI’s policy repo rate. Therefore, changes in the repo rate can directly affect the lending rate applicable to loans linked to the benchmark.
The latest revision follows the RBI’s decision to raise the repo rate from 5.25% to 5.50%, representing an increase of 25 basis points.
What Is BRLLR?
The Baroda Repo Based Lending Rate is a lending benchmark used by Bank of Baroda for certain loans that are linked to the repo rate.
Because the benchmark is connected to the RBI’s policy repo rate, changes in monetary policy can lead to corresponding adjustments in the bank’s lending rates.
When the repo rate rises, the cost of funds linked to the benchmark generally increases, which can result in higher interest rates for loans whose pricing is directly linked to that benchmark.
The actual impact on an individual borrower depends on the specific loan agreement, benchmark, spread or margin and applicable reset terms.
Impact on Borrowers
The increase in BRLLR could affect borrowers whose loans are directly linked to Bank of Baroda’s repo-based lending benchmark.
For eligible floating-rate loans, a higher benchmark can translate into a higher effective interest rate when the loan rate resets.
The impact on a borrower’s monthly EMI or loan tenure will depend on factors including the outstanding principal, remaining tenure, applicable spread and the terms governing the interest-rate reset.
Borrowers should therefore check their individual loan documents and the revised applicable rate to determine the precise financial impact.
Existing and New Loans
The revised BRLLR is particularly relevant for customers whose borrowing is priced using the bank’s repo-linked benchmark.
For new borrowers, the applicable lending rate will depend on the product, benchmark and spread prescribed by Bank of Baroda.
For existing floating-rate borrowers, the impact will depend on the contractual reset date and the benchmark applicable to their loan.
Not every Bank of Baroda loan will necessarily be affected in the same way because different credit products can have different benchmark structures and pricing mechanisms.
RBI Repo Rate Drives the Revision
The immediate reason for Bank of Baroda’s BRLLR revision is the 25-basis-point increase in the RBI repo rate from 5.25% to 5.50%.
The repo rate is the rate at which the RBI lends short-term funds to eligible financial institutions against eligible securities. It is one of the central tools used by the RBI to influence monetary conditions and borrowing costs in the economy.
Changes in the policy rate can influence lending and deposit rates across the banking system, although the extent and timing of transmission can vary between banks and loan products.
Bank Keeps Mark-Up Unchanged
An important feature of the latest Bank of Baroda revision is that the bank has not changed its 2.65% mark-up.
The calculation therefore remains:
Repo Rate: 5.50% + Mark-up: 2.65% = BRLLR: 8.15%
Previously, the calculation was:
Repo Rate: 5.25% + Mark-up: 2.65% = BRLLR: 7.90%
This means the entire increase in the BRLLR is attributable to the 25-basis-point rise in the repo rate, while the bank’s mark-up remains unchanged.
Regulatory Disclosure
Bank of Baroda has formally notified the stock exchanges about the change in its lending benchmark.
The disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which covers disclosure of material events and information by listed entities.
The regulatory filing provides investors and other stakeholders with formal confirmation of the revised benchmark rate and its effective date.
Significance for the Banking Sector
The move comes amid a broader transmission of changes in India’s monetary policy to lending rates.
Repo-linked lending benchmarks are designed to respond to changes in the RBI’s policy rate, making them an important channel through which monetary-policy decisions can affect borrowing costs for consumers and businesses.
Bank of Baroda’s latest revision demonstrates this transmission mechanism, with the bank increasing its BRLLR by exactly 25 basis points following the corresponding increase in the repo rate.
Key Takeaways
- Bank: Bank of Baroda
- Benchmark: Baroda Repo Based Lending Rate (BRLLR)
- Previous BRLLR: 7.90%
- New BRLLR: 8.15%
- Increase: 25 basis points
- Effective date: October 8, 2026
- RBI Repo Rate: Increased from 5.25% to 5.50%
- Bank mark-up: 2.65%, unchanged
- Regulatory filing: Made under Regulation 30 of SEBI LODR Regulations, 2015
Conclusion
Bank of Baroda’s decision to raise its BRLLR from 7.90% to 8.15%, effective October 8, 2026, follows the RBI’s 25-basis-point increase in the repo rate to 5.50%.
With the bank’s 2.65% mark-up remaining unchanged, the increase in BRLLR directly reflects the change in the underlying repo rate.
The revision will be relevant to borrowers whose loans are linked to Bank of Baroda’s repo-based benchmark, with the precise impact depending on their individual loan terms, spreads and rate-reset provisions.
The latest move also highlights the continued importance of monetary-policy transmission in determining borrowing costs across India’s banking sector.
