In a strategic move aimed at stimulating economic growth and encouraging borrowing, the Reserve Bank of India (RBI) recently announced a cut in the repo rate. This reduction, which is the rate at which the RBI lends to commercial banks, has significant implications for both borrowers and the broader economy.
Following the Reserve Bank of India’s (RBI) recent reduction in the repo rate, several major banks have adjusted their Repo-Linked Benchmark Lending Rates (RBLR). Typically, a decrease in the repo rate leads to a corresponding reduction in RBLR, as banks’ cost of funds decreases.
This adjustment benefits borrowers by lowering their interest rates on loans linked to the RBLR, such as home and auto loans and more, resulting in reduced equated monthly installments (EMIs) and overall interest expenses. However, the extent of benefit may vary depending on the bank’s specific benchmark and the borrower’s loan agreement terms.
The list below shows the banks that have cut interest rate following the RBI’s repo rate cut:
Indian Bank
Indian Bank is a leading public sector bank in India, offering a range of financial services, including retail and corporate banking, loans, and investments. Established in 1907 and headquartered in Chennai, it is one of the largest nationalized banks in India.
Indian Bank has reduced the repo-linked lending rate (RLLR) by 35 basis points (bps), bringing the rate from 9.05 to 8.70 percent, effective from April 11, 2025.This reduction lowers interest rates on various loan products, including home and vehicle loans, resulting in reduced equated monthly installments (EMIs) and overall interest expenses for borrowers.
Bank of India
Bank of India (BoI), founded in 1906 and headquartered in Mumbai, is a major public sector bank in India. It provides a wide range of services, including retail banking, corporate banking, and NRI services. BoI operates both in India and internationally, with branches in over 20 countries.
The Bank of India has reduced the repo-linked lending rate (RLLR) by 25 bps, bringing the rate to 8.90 percent, effective from April 9, 2025.This adjustment makes loans linked to the RBLR more affordable, offering borrowers reduced EMIs and decreased interest costs.
Punjab National Bank Limited
Punjab National Bank, founded in 1894 and headquartered in New Delhi, is one of the largest and oldest public sector banks in India. PNB provides a full spectrum of banking services, including savings and current accounts, loans, and insurance. The bank has a strong domestic and international presence and is focused on enhancing digital banking and improving operational efficiency after addressing past financial challenges.
Punjab National Bank (PNB) has reduced the repo-linked lending rate (RLLR) by 25 bps, bringing the rate to 8.85 percent, effective from April 10, 2025.The rate cut benefits borrowers with loans linked to the RBLR, such as home and personal loans, by lowering their EMIs and total interest payments.
UCO Bank
UCO Bank, established in 1943 and headquartered in Kolkata, is a major public sector bank in India. It offers banking products like savings and current accounts, loans, and financial services. UCO Bank is known for its customer-oriented approach and has a significant presence in India, especially in urban and semi-urban regions.
UCO Bank has adjusted its Repo-Linked Benchmark Lending Rate (RBLR) to 8.80 percent, effective from April 10, 2025. This reduction aims to lower borrowing costs for customers with loans linked to the RBLR, such as home and vehicle loans, resulting in reduced equated monthly installments (EMIs) and overall interest expenses.
Written by Sridhar J
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