- MUMBAI
— Several major banks, including Punjab National Bank (PNB), Bank of India
and UCO Bank, have slashed their lending rates following the Reserve Bank of India's
(RBI) recent decision to cut the repo rate by 50 basis points.
-
- The rate cut is part of the RBI’s strategy to stimulate
economic growth by making borrowing more affordable for both consumers and
businesses.
-
- Punjab National Bank was among the first to pass on the
benefit, lowering its repo-linked lending rate from 8.85 per cent to 8.35 per
cent.
-
- However, the bank kept its base rate and marginal cost of
lending rate (MCLR) unchanged.
Also read: Stock market exhibits resilience, RBI’s rate cut icing on the cake
- Bank of India followed with a similar reduction, cutting its
repo-based lending rate from 8.85 per cent to 8.35 per cent, as per its stock
exchange filing.
-
- UCO Bank took a different route, trimming its MCLR by 10
basis points across all loan tenures. The changes, effective from June 10, will
make various types of loans -- including home and personal loans -- slightly
more affordable.
-
- The bank reduced its overnight MCLR from 8.25 per cent to
8.15 per cent, the one-month MCLR from 8.45 per cent to 8.35 per cent, and the
three-month MCLR from 8.6 per cent to 8.5 per cent.
-
- The six-month and one-year MCLRs were lowered to 8.8 per
cent and 9 per cent, respectively.
-
- Bank of Baroda also announced a 50 basis point reduction in
its repo-linked lending rates for select loan tenures, adding to the list of
banks easing borrowing costs.
-
- These rate cuts come in response to the RBI’s move,
announced by the Monetary Policy Committee led by Governor Sanjay Malhotra, to
lower the repo rate -- a key policy rate at which the RBI lends money to
commercial banks.
