The lending rate at an Indian bank has been raised to 4.40 percent
On Saturday, the state-owned Indian Bank announced that the repo linked lending rate had been reduced from 4% to 4.40%, effective Monday (May 9)
Several banks raised their external benchmark-based lending rates following an increase of 0.40 percent. In the repo rate the rate at which the Reserve Bank lends short-term money to banks.
“The bank’s Asset Liability Management Committee (ALCO) has reviewed the lending rate for all loans/advances linked with the policy repo rate. Also revised the lending rate linked with the policy repo rate based on repo from 4% to 4.40%. Indian Bank said in a regulatory filing.
According to the statement, the bank’s revised lending rate will be effective for new customers on May 9, 2022, and for all existing customers on June 1, 2022.
In addition, ICICI Bank, Punjab National Bank, Bank of Baroda, Central Bank of India. Bank of India also mortgage lender HDFC Ltd have all announced increases in the repo-linked lending rate.
Banks and financial institutions are raising interest rates after the RBI raised the repo rate and cash reserve ratip. The percentage of total deposits held by banks with the RBI by 40 basis points. And 50 basis points, respectively, earlier this week.
Following an unexpected Monetary Policy Committee (MPC) meeting. The Reserve Bank raised the benchmark repo rate by 0.40 percent to 4.40 percent with immediate effect, aiming to contain soaring inflation.
