State-Owned Lenders Cut Rates Following RBI Decision
Union Bank of India, Canara Bank, and Indian Overseas Bank have reduced their lending rates by 50 basis points. This move follows the RBI's unexpected rate cut and is expected to benefit retail and MSME borrowers as it aligns lending rates with the central bank's recent economic stimulus efforts.
- Country:
- India
Three major state-owned lenders, Union Bank of India, Canara Bank, and Indian Overseas Bank, have slashed their lending rates by 50 basis points. This decision aligns with the recent rate moderation carried out by the Reserve Bank of India (RBI) in an effort to stimulate economic growth.
In a series of statements, the banks revealed that the External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) are undergoing significant reductions. Union Bank of India, for instance, stated that these changes would fully align their rates with the RBI's latest adjustments, benefiting a broad range of borrowers, including those seeking retail and MSME loans.
The RBI's monetary policy committee, led by Governor Sanjay Malhotra, had previously voted to lower the repo rate from 8.85% to 8.35%. Concurrently, the cash reserve ratio was slashed by 100 basis points to 3%, enhancing the liquidity in the banking system by Rs 2.5 lakh crore.
(With inputs from agencies.)
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