New Delhi: Four public sector banks — Punjab National Bank (PNB), Bank of India, Indian Bank and UCO Bank, have announced up to 35 basis points reduction in lending rate within hours of RBI’s decision to slash its policy rate on Wednesday, a move which will help existing and new borrowers. Other banks are also expected to make similar announcements soon.
These public sector banks, in separate regulatory filings, said the rate revision has been done following the RBI’s reduction in the short-term lending rate (repo rate) earlier in the day. Chennai-based Indian Bank said its Repo-Linked Benchmark Lending Rates (RBLR) will be lowered by 35 basis points to 8.70 per cent effective April 11.
Meanwhile, PNB has revised RBLR from 9.10 per cent, to 8.85 per cent with effect from April 10. Bank of India’s new RBLR stands at 8.85 per cent, compared to 9.10 per cent earlier. The new rate would be effective from Wednesday, Bank of India said in a regulatory filing.
UCO Bank said it has brought down the repo-linked rate to 8.8 per cent, effective Thursday.
One of the central fallouts of a Repo Rate cut is the overall lowering of cost of funds in the system. Decline in retail loan interest such as personal loan, home loan and car loan can boost consumption quickly. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
