Indian Banks Slash Lending Rates Following RBI Policy Cut

Four major public sector banks, including Punjab National Bank, have reduced their lending rates by up to 35 basis points following the RBI's policy rate cut. This reduction is expected to benefit both existing and new borrowers. Other banks may follow suit with similar announcements.

In a swift response to the Reserve Bank of India's policy rate cut, four leading public sector banks have announced reductions in their lending rates by up to 35 basis points. This move is poised to aid both existing and new borrowers by lowering borrowing costs.

The rate cuts were disclosed by Punjab National Bank (PNB), Bank of India, Indian Bank, and UCO Bank through separate regulatory filings. They coincide with the RBI's decision to decrease its short-term lending rate, widely known as the repo rate.

Effective next week, the revised rates will see Indian Bank's Repo-Linked Benchmark Lending Rates drop to 8.70 percent, PNB and Bank of India adjusting to 8.85 percent, and UCO Bank setting its rate at 8.8 percent. More banks are expected to follow.

(With inputs from agencies.)