Following its peers like SBI, HDFC Bank and Bank of India, state-run Bank of Baroda also has lowered its marginal cost of funds-based lending rates (MCLR) by up to 20 bps across various tenors, effective December 12.

The rate reduction comes even as the RBI in a surprise move had left the key policy rates unchanged at the last meeting on December 5.

But the city-based lender has reduced its one-year MCLR rates, to which all retail loans are linked to, only marginally by 5 bps to 8.25 percent, the bank said in statement on Tuesday.

On Monday, while SBI cut its one-year MCLR by 10 bps to 7.90 percent, HDFC Bank did a 15 bps cut to 8.15 percent, and Bank of India reduced the same by 20 bps to 8.20 percent.

With this, BoB's overnight and one-month rates are down 20 bps to 7.65 percent now.

It has also reduced by 10 bps in three-months and six months MCLR to 7.80 percent and 8.10 percent, respectively.