Banks Reduce Lending Rates After RBI’s 6% Repo Cut
Why in the news
After the repo cut and accommodative stance, public sector banks reduced their benchmark-linked lending rates.
Revisions
| Bank | Rate | Old to new | From |
|---|---|---|---|
| Indian Bank | RBLR | 9.05% to 8.70% | April 11 |
| PNB | RLLR | 9.10% to 8.85% | April 10 |
| Bank of India | RBLR | 9.10% to 8.85% | April 9 |
Key facts
- The MPC was unanimous on the cut, the stance shift and surplus liquidity.
- Every floating-rate loan must sit on an external benchmark like the repo rate, which speeds up pass-through.
- Borrowers get lower EMIs; banks may see thinner NIMs.