Indian Bank Also Increased Repo Linked Lending Rate

Indian Bank also increased repo linked lending rate, the new rate will be applicable from May 9.

Ever since the Reserve Bank of India has increased the repo rate, many banks have made repo-linked loans expensive. Now Indian Bank has also joined this episode.

Indian Bank on Saturday said that it has revised the repo-linked lending rate. The revised repo linked rating rate will be applicable from May 9.

Indian Bank has taken this step after several banks increased their external benchmark-based lending rates. Earlier, the Reserve Bank had increased the repo rate by 0.40 percent.

Indian Bank, in a regulatory filing, said, “The Bank’s Asset Liability Management Committee (ALCO) has reviewed the lending rate for all loans/advances linked to the policy repo rate.

The bank said the repo rate has been revised from 4 percent to 4.40 percent. It has revised the lending rate linked to the Policy Repo Rate to percentage.

The Bank said that its above-revised lending rate will be effective from 9th May 2022 for new customers and from 1st June 2022 for all existing customers of the Bank.

Significantly, several banks including ICICI Bank, PNB, Bank of Baroda, Central Bank of India, Bank of India, and mortgage lender HDFC Ltd have announced an increase in the lending rate linked to the repo.

Banks and financial institutions are likely to hike interest rates after 40 basis points and 50 basis points, respectively.

In the new repo rate and cash reserve ratio (percentage of banks’ total deposits with the RBI) announced by the RBI earlier this week.

RBI raised the benchmark repo rate (the short-term lending rate charged by banks) by 0.40 percent to 4.40 percent after a meeting of the MPC without any fixed schedule, with immediate effect.

This step was taken with the aim of controlling the rising inflation.

PNB increased the interest rate on FD, as well as made loans expensive from June 1

Punjab National Bank (PNB) has increased interest rates on fixed deposits, and FDs by up to 60 basis points in select buckets from today.

According to the news agency, the revised interest rates will be applicable on new deposits and renewal of existing deposits from May 7 this year.

PNB’s new fixed deposit rates are applicable on deposits up to Rs 10 crore.

Interest rates have been increased by 60 basis points for deposits maturing between 30 and 45 days for FDs between Rs 2 crore and Rs 10 crore.

The FD rate has been increased by 50 bps for deposits maturing between 271 days and less than one year. Interest rates for FDs below Rs 2 crore will increase by 10 -20 bps.