Ajit Karn
Despite the increase in the repo rate by the Reserve Bank earlier in the week, Canara Bank announced on Friday a 15 basis point reduction in lending rates.
The public sector lender announced in a regulatory filing that the bank’s revised Repo-Linked Lending Rate (RLLR) will take effect on February 12.
After the rate reduction, the new RLLR for canara Bank will be 9.25%, as opposed to the current 9.40%.
The Reserve Bank of India (RBI) raised the benchmark policy rate by 25 basis points to 6.5% on Wednesday, citing persistent core inflation. Banks have since revised their lending rates.
Following the announcement by the Reserve Bank of India, Punjab National Bank increased its Repo-Linked Lending Rate by 25 basis points, from 8.75% to 9%. (RLLR). The PNB rate increase went into effect on Thursday.
Bank of Baroda also announced an increase of 5 basis points in its Marginal Cost of Funds-Based Lending Rate (MCLR) across all maturities.
The overnight MCLR at BoB has increased from 7.85% to 7.90% as a result of the revision. The bank announced in a regulatory filing that the new rates will go into effect on February 12.
Also read this:Shares of Axis Bank for Rs. 1,300 After Strong, Axis Bank Q3 Result.
Since May of last year, the interest rate has been increased six times by the central bank, for a total increase of 250 basis points, as a result of the RBI’s repo rate increase.
