Last Updated:
The RBI cut the repo rate by 50 basis points to 5.50 percent. Banks like Bank of Baroda, PNB, UCO Bank, and HDFC Bank have followed the suit to reduce their lending rates.
Banks have followed the suit following RBI’s repo rate cut by 50 bps to 5.50 per cent.
RBI Repo Rate Cut Impact: After the Reserve Bank of India (RBI) reduced the repo rate by 50 basis points on June 6, various banks have followed suit by lowering their lending rates to benefit borrowers. The RBI’s Monetary Policy Committee, spearheaded by Governor Sanjay Malhotra, cut the key policy rate from 6.00% to 5.50% to encourage economic growth through reduced borrowing costs.
Between May 2020 and April 2022, the RBI kept the repo rate steady at 4 percent. From April 2022 to February 2023, the RBI gradually increased the policy rates to 6.5 percent, maintaining this rate for two years until the recent reductions.
Bank Of Baroda Cuts BRLLR By 50 Bps
Bank of Baroda (BoB) promptly announced a reduction in its Baroda Repo Linked Lending Rate (BRLLR) by 50 basis points, from 8.65% to 8.15%, effective June 07.
The state-owned bank retained its mark-up of 2.65%, ensuring that the entire rate cut by RBI is passed on to borrowers. This adjustment will benefit both new and existing borrowers, particularly in the home loan and SME segments.
PNB Lowers RLLR To 9.10%
Punjab National Bank (PNB) followed suit by lowering its Repo Linked Lending Rate (RLLR) to 9.10%, effective June 10, down from the previous 9.60%. This reduction aims to make home, auto, and MSME loans more affordable.
UCO Bank Trims RLLR By 50 Bps
UCO Bank also trimmed its rates, reducing its RLLR by 50 basis points to 8.30%, effective June 9, and cutting its MCLR by 10 basis points across various tenures, with the one-year MCLR now at 9%.
HDFC Bank Slashes MCLR By 10 Bps
HDFC Bank reduced its benchmark lending rates after the RBI’s surprise 50 basis point repo rate cut to stimulate the slowing economy. The bank decreased its marginal cost of funds-based lending rates (MCLR) by 10 basis points across all loan tenures. Effective June 7, the overnight and one-month MCLR are now 8.90%, the three-month rate is 8.95%, and the six-month and one-year rates have been adjusted to 9.05%. The two- and three-year rates were cut from 9.20% to 9.10%.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
- First Published: