India’s state-owned bank’s repo-linked lending rate has been changed with effect from May 9. increased their benchmark external lending rates.
The bank’s said revised lending rate will come into effect from May 9, 2022 for new customers and from June 1, 2022 for all existing customers of the bank, the bank said. A number of banks, including ICICI Bank, Punjab National Bank, Bank of Baroda, Central Bank of India, Bank of India and mortgage lender HDFC Ltd, have announced an increase in the repo-linked lending rate.
“The bank’s Asset and Liability Management Committee (ALCO) has reviewed the lending rate for all loans/advances linked to the policy’s repo rate and revised the lending rate linked to the repo rate repo-based policy from 4% to 4.40%,” Indian Bank said in a regulatory filing.
Banks and financial institutions are on an interest rate hike spree following the increase in the repo rate and the cash reserve ratio (percentage of banks’ total deposits kept with the RBI) by 40 points basis points and 50 basis points respectively announced by the RBI earlier this week.
After an out-of-round Monetary Policy Committee (MPC) meeting, the Reserve Bank on Wednesday raised the benchmark repo rate – the short-term lending rate it charges banks – by 0.40% to 4, 40% with immediate effect, aimed at taming soaring inflation.
Summary of news:
- The interest rate on repo-linked loans from an Indian bank has been revised
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