Within days of the RBI repo rate cut by 25 basis points (bps) from 6.25% to 6%, as many as four public sector banks (PSBs) have slashed their lending rates. These banks are Punjab National Bank (PNB), Bank of Baroda (BOB), Indian Bank, and Bank of India.
All these banks have lowered their repo-linked lending rate (RLLR), which will lead to cheaper homes, and other personal loan products. RLLR refers to the rate at which banks extend credit to their customers, based on the RBI repo rate.
Punjab National Bank (PNB)
Punjab National Bank (PNB) has cut its rate from 9.1% to 8.85%, effective from April 10, 2025. There are no changes to the bank’s existing marginal cost of funds-based lending rate (MCLR) and base rate.
Bank of Baroda (BOB)
BOB reduced its lending rates following the repo rate cut. It brought down its One-Year Marginal Cost of Funds-Based Lending Rate (MCLR) to 9% and lowered its overnight MCLR to 8.15%.
Indian Bank
The bank has lowered its repo-linked lending rate from 9.05% to 8.7%, effective from April 11, 2025. These rates will apply to all repo-linked loans and will remain in force until the next scheduled review.
Bank of India
Bank of India cut its RBLR from 9.1% to 8.85%, effective from April 9, 2025.