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Bank of India Raises Lending Rate, Loans to Become Costlier

Published On : 2024-03-31T15:03:51+0530 [ IST ] | Author : Mayur_Tembhare
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India :

State-owned Bank of India (BoI) has announced a hike in lending rates by 10 basis points, a move that will result in increased costs for loans, including retail ones.

The lending rate adjustment precedes the monetary policy announcement by the Reserve Bank of India scheduled for April 5.

According to a regulatory filing on Saturday, the new rate will be effective from April 1.

“The bank has increased the mark-up by 10 bps from the existing level of 2.75 per cent to 2.85 per cent, and with the present repo rate of 6.5 per cent, the repo-based lending rate (RBLR) will be 9.35 per cent,” the filing stated.

In a separate filing, another public sector lender, Indian Bank, has also raised the lending rate linked to base rate and benchmark prime lending rate by 5 basis points.

The new rates will come into effect from April 3 for Indian Bank customers.


Source : Business Line


Tags : Regulatory Filing , monetary policy , benchmark prime lending rate. , Bank of India , repo rate , loans , base rate , lending rate , Indian Bank , retail , Reserve Bank of India ,


Summary : Bank of India has decided to raise its lending rates by 10 basis points, making loans, including retail ones, more expensive for borrowers. The adjustment in lending rates precedes the upcoming monetary policy announcement by the Reserve Bank of India. Effective from April 1, the new rate hike will increase the repo-based lending rate to 9.35 per cent. Additionally, Indian Bank has also raised its lending rates by 5 basis points, with the new rates set to be effective from April 3.



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