After Punjab National Bank and 4 other government banks, now Indian Overseas Bank has also announced a cut in interest rates on loans. Giving information, IOB said that after the cut, the new rates have become effective from April 12, 2025.
Another government bank of the country has reduced interest rates. Indian Overseas Bank (IOB) has cut the interest rate linked to the repo rate by 0.25 percent. The bank gave this information today. Recently, the Reserve Bank of India (RBI) decided to reduce the policy rate repo from 6.25 percent to 6 percent in the recent meeting of its Monetary Policy Committee (MPC). The decision of the bank to cut interest rates comes amid growing uncertainties after US President Donald Trump announced a 26 percent duty on imports of Indian goods last week.
The Asset Liability Management Committee has decided to give the benefit of rate cut to the customers in its meeting held on April 11. The bank has reduced the interest rate on repo-linked loans by 0.25 percent from 9.10 percent to 8.85 percent. This reduction will be effective from April 12, 2025.
Other banks including PNB have also reduced rates
Earlier, Punjab National Bank, Bank of India, Indian Bank and UCO Bank have also announced reduction in interest rates. This decision of the banks will benefit both their existing and new borrowers. Indian Bank said that its repo-linked standard lending rate will be reduced by 35 basis points to 8.70 percent from April 11.
Punjab National Bank has revised the RBLR from 9.10 percent to 8.85 percent. The new RBLR of Bank of India is 8.85 percent, whereas earlier it was 9.10 percent. At the same time, UCO Bank also said that it has reduced the lending rate to 8.8 percent.
Let us tell you that RBI Governor Sanjay Malhotra announced a cut in the repo rate on 9 April. Now the repo rate has come down to 6 percent. Last time in the February policy, RBI had cut the repo rate for the first time in five years.
