State-Owned Banks Slash Lending Rates After RBI's Bold Move

Union Bank of India and Indian Overseas Bank have cut lending rates by 50 basis points following the Reserve Bank of India's recent rate moderation. This affects the External Benchmark Lending Rate and Repo Linked Lending Rate, aiming to benefit retail and MSME borrowers by providing cheaper access to loans.

Devdiscourse News Desk | New Delhi | Updated: 11-06-2025 20:40 IST | Created: 11-06-2025 20:40 IST

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Country:
India

Two prominent state-owned banks, Union Bank of India and Indian Overseas Bank, have announced a reduction in lending rates by 50 basis points. This move is in response to the Reserve Bank of India's recent decision to moderate rates, which aims to stimulate the economy.

The adjustments entail lowering the External Benchmark Lending Rate and Repo Linked Lending Rate by 50 basis points to align with the RBI's reduction, benefiting retail and MSME borrowers. Union Bank of India has confirmed its rates are now in sync with the RBI's latest rate cut.

The RBI's unexpected actions include a significant cut in interest rates and a reduction in the cash reserve ratio for banks. Governor Sanjay Malhotra led the monetary policy committee, which voted majority in favor of this decision, aimed at increasing lending capacities and fostering economic growth.

(With inputs from agencies.)