Archive · 8 Jun 2025
Banks Slash Lending Rates After RBI's Repo Rate Cut
The Reserve Bank of India (RBI) lowered a key interest rate, prompting several banks in India to reduce their lending rates.
This means home, vehicle, and other loans will become cheaper.
Banks like PNB, BoI, UCO Bank, Indian Bank, and Bank of Baroda reduced their repo linked lending rates (RLLRs) by 50 basis points.
UCO Bank also cut its MCLR rates.
The goal is to make borrowing cheaper and stimulate the economy.
However, banks' profit margins may be impacted.
Multiple banks have cut their repo linked lending rates (RLLRs) by 50 basis points.
These cuts followed the RBI's decision to reduce the repo rate by 50 bps.
The central bank also reduced the cash reserve ratio (CRR) by 100 bps.
PNB, BoI, UCO Bank, Indian Bank, and Bank of Baroda were among the banks that lowered rates.
UCO Bank also decided to cut MCLR rates across the board by 10 bps.
- Who
- Reserve Bank of India (RBI) and multiple banks
- What
- Banks are reducing lending rates.
- When
- Effective June 6, 7, 9, and 10
- Where
- India
- Why
- Following the RBI's repo rate reduction, to make loans cheaper.
Customers
Banks
Impact on Net Interest Margins
Customers
Customers benefit from reduced lending rates.
Banks
Banks' net interest margins (NIMs) are expected to be sharply impacted, especially in Q2FY2025.
- RBI Repo Rate
- 5.50%
- RLLR Reduction
- 50 bps
- PNB RLLR
- 8.35%
- BoB RLLR
- 8.15%
- UCO Bank RLLR
- 8.30%
- BoI RLLR
- 8.35%
- CRR Reduction
- 100 bps
Sources
RBI Rate Cut Impact: PNB Slashes Lending Rate By 50 Bps Making Home Loan Cheaper
RBI Cuts Repo Rate To 5.50%: What This Means
Cheapest home loans in June: THESE banks charging lowest interest rates after RBI rate cut
Bank of Baroda, HDFC Bank reduce lending rate by up to 50 bps, 10 bps
RBI’s repo rate cut effect: These banks have slashed lending rates for customers
Bank of Baroda, HDFC Bank reduce lending rate by up to 50 bps, 10 bps
