PNB to Bank of Baroda: 5 Banks Raise Lending Rates After RBI Repo Hike
Punjab National Bank, Bank of India, Indian Bank, Bank of Baroda and Indian Overseas Bank have raised repo-linked lending rates after the RBI increased the repo rate to 5.50%.
Borrowers are likely to feel the impact of the RBI's latest rate hike as several major banks have increased their benchmark lending rates. The Reserve Bank of India raised the repo rate by 25 basis points to 5.50% on October 7, prompting five lenders to revise repo-linked rates within hours.
Punjab National Bank raised its Repo Linked Lending Rate (RLLR) from 8.10% to 8.35%, effective October 8. Its MCLR and Base Rate remain unchanged.
Bank of India increased its Repo Based Lending Rate (RBLR) from 8.10% to 8.35% from October 7, while Indian Bank raised its repo-linked benchmark from 7.95% to 8.20%, effective October 8.
Bank of Baroda increased its Baroda Repo Based Lending Rate (BRLLR) by 25 basis points, taking it from 7.90% to 8.15%. Indian Overseas Bank also raised its RLLR from 8.10% to 8.35%, with the new rate effective October 8.
The changes primarily affect borrowers whose loans are linked to external benchmarks such as the repo rate. Existing floating-rate borrowers could see higher EMIs or longer repayment periods, depending on how their lender passes on the increase.
For new borrowers, the rate revisions mean a higher interest burden on fresh loans. Other banks could also follow with similar adjustments as the RBI's latest policy move works its way through the lending system. The repo rate may have moved by just 25 basis points, but borrowers will certainly notice where those points land.
