A number of banks have lowered their lending rates following the Reserve Bank of India’s repo rate cut on Friday. This is after RBI’s Monetary Policy Committee, led by Governor Sanjay Malhotra, reduced the key lending rate by 50 basis points. This reduction aims to stimulate economic activity by making borrowing cheaper for businesses and consumers.
Punjab National Bank revised its repo-linked lending rate from 8.85% to 8.35% on Friday after the RBI cut the repo rate.
The marginal cost of lending rate and base rate will remain unchanged, PNB said.
Bank of India has revised its repo-based lending rate by 50 bps to 8.35%. The earlier rate stood at 8.85%, according to an exchange filing on Friday.
UCO Bank reduced its marginal cost of fund-based lending rate by 10 basis points across tenures after the RBI cut the repo rate,
The MCLR has been reduced across all tenors. This means that loans linked to the MCLR, such as home loans, personal loans and some business loans, may become cheaper for customers, according to an exchange filing.
Effective from June 10, the overnight MCLR has been decreased from 8.25% to 8.15%. The one-month MCLR has been lowered from 8.45% to 8.35%. Three-month MCLR has seen a cut from 8.6% to 8.5% and the six-month MCLR from 8.9% to 8.8%. The one-year MCLR decreased from 9.1% to 9%.
Other benchmark rates revised will be effective from June 9. All treasury bill-linked rates for three months, six months and 12 months have been reduced from their previous rates of 6% or 6.05% to a uniform 5.8%.
Bank of Baroda has also cuts its repo based lending rates by 50 bps across some tenures.
RBI also announced a reduction in the Cash Reserve Ratio by 100 basis points, lowering it from 4% to 3%. This cut will be implemented in four staggered stages and is expected to release primary liquidity of Rs 2.5 lakh crore into the banking system.
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