Bank of Baroda shares rose in morning trade on March 6 after the bank cut home loan rates.

State-owned Bank of Baroda (BoB) cut its home loan rate by 40 basis points (bps) to 8.5% on Sunday in response to stiff competition.

The bank has also reduced MSME lending rates from 8.4%. Both offers are valid from March 5 and will be valid until March 31, BoB said in a statement.

Shares of Bank of Baroda were trading at Rs 174.75 at 9:34 am, up Rs 1.80, or 1.04%.

The bank claims this is one of the industry’s lowest and most competitive rates.

The new home loan rate starts at 8.5% for borrowers applying for new home loans, balance transfers and home improvement loans. It said increasing interest rates was linked to a borrower’s credit score.

Apart from lowering the interest rate, the bank has also prepared a 100% fee waiver for home loans and a 50% waiver for MSME loans, it said.