Three public sector public sector banks- Union Bank of India, Canara Bank and Indian Overseas Bank on Wednesday announced a reduction of 0.50 percent in the borrowing rate. Union Bank said in a statement that these changes include the external benchmark loan rate (EBLR) and Repo Linked Loan Rate (RLLR) reduction of 50 basis marks. The bank has cut its debt rate by 50 basis points in the rates made by RBI last week.
New rates of Indian Overseas Bank
The Indian Overseas Bank (IOB) said that in a meeting of the bank’s property liability management committee (ALCO) on Tuesday, it has been decided to reduce the interest payable by 0.50 percent on repo -based loans. After this cut, the RLLR has come down to 8.35 percent, which was 8.85 percent earlier. The new rate is applicable from Wednesday.
Canara Bank also gave relief
Canara Bank has also announced a reduction of 0.50 percent in the repo -based interest rate. According to the bank’s statement, the repo -based interest rate has come down from 8.75 percent to 8.25 percent due to this deduction. The new rate is applicable from Wednesday.
New and current customers will benefit
According to PTI news, this step of banks will be beneficial for new and existing retail (home, vehicle, personal, etc.) and MSME borrowers. After the RBI action, many banks have cut the debt rates and the rest of the banks will also do so soon.
RBI cut 50 basis points
Earlier on Friday, RBI cut interest rates more than an expected 50 basis points and unexpectedly reduced the cash reserve ratio (CRR) for banks to promote the economy. The six -member monetary policy committee of the RBI, headed by Governor Sanjay Malhotra and three external members, reduced the benchmark Punarkharid or repo rate from 50 basis points to 5.5 percent. It also reduced the cash reserved ratio from 100 basis points to 3 percent, causing an increase of Rs 5 lakh crore in the already surplus liquidity in the banking system.
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