Public sector Banks raised lending benchmark points in new FY

Two PSBs Indian Bank and Bank of India have revised their lending rates with new basis points up by 5 and 10, respectively.

Public sector Banks raised lending benchmark points in new FY

The Bank of India (BoI), which is a state-owned bank, has recently announced that it will be increasing its lending rate by 10 basis points. This move will lead to loans becoming more expensive, including retail loans. Additionally, Indian Bank, which is another public sector lender, has separately increased its lending rate linked to the base rate and Benchmark Prime Lending Rate by 5 basis points.

It is important to note that these lending rate hikes come ahead of the monetary policy announcement by the Reserve Bank of India on April 5. increase comes ahead of the monetary policy announcement by the Reserve Bank of India on April 5.

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The new rate would be effective from April 1, in the case of the Bank of India, and for the Indian Bank, the new rates will be effective from April, 3.

The Bank of India has increased the mark-up by 10 bps from the existing level of 2.75 percent to 2.85 percent, and with the present repo rate of 6.5 percent, the repo-based lending rate (RBLR) will be 9.35 percent.

 Meanwhile, in a separate filing, another public sector lender Indian Bank has hiked the lending rate linked to base rate and Benchmark Prime Lending Rate by 5 basis points.

 

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