June 14, 2025 12:21 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Israel launches fresh missile attacks on Iran after targeting nuclear infrastructure | Day after Ahmedabad crash, Delhi-bound Air India flight makes emergency landing in Thailand over bomb threat | Narendra Modi visits Air India flight crash site in Ahmedabad | British gay couple posted 'Goodbye India' video before boarding doomed Air India flight | Doctor couple's final selfie with 3 children on ill-fated Air India flight goes viral | After over a billion passengers flown, Air India crash ends Boeing 787 Dreamliner’s fatality-free run | Air India flight with 242 on board crashes moments after takeoff in Ahmedabad, all dead except one | Ex-Gujarat CM Vijay Rupani among 242 killed in Air India crash near Ahmedabad | Telangana engineer, who worked on Kaleshwaram irrigation project, held in disproportionate case | 'If guilty, she must be hanged': Sonam Raghuvanshi's brother on Meghalaya murder
Representational photo: Unsplash

PNB, BoB, other banks cut lending rates after RBI’s surprise 50 bps repo slash

| @indiablooms | Jun 08, 2025, at 04:59 pm

New Delhi: A host of public sector banks — Punjab National Bank (PNB), Bank of Baroda, UCO Bank, and Bank of India — along with private lender Karur Vysya Bank, have cut lending rates following the Reserve Bank of India’s unexpected 50 basis point (bps) repo rate reduction last week, according to a Business Standard report.

The Monetary Policy Committee (MPC) surprised markets by slashing the repo rate to 5.5%, against forecasts of a smaller 25 bps cut. This marks the third cut in 2025, taking the cumulative reduction to 100 bps so far this year.

Repo-linked rate revisions:

PNB revised its repo-linked lending rate (RLLR) from 8.85% to 8.35%, effective 9 June, but left its MCLR unchanged.

Bank of Baroda lowered its RLLR by 50 bps to 8.15%, effective 7 June.
Bank of India brought down its Repo-Based Lending Rate (RBLR) to 8.35%, with effect from 6 June.

UCO Bank slashes both repo and MCLR rates:

UCO Bank implemented a 10 bps cut across all MCLR tenures from 10 June, alongside a 50 bps reduction in its repo-linked rate to 8.30%, effective 9 June.

New MCLR structure:

Overnight: 8.15%
1-month: 8.35%
3-month: 8.50%
6-month: 8.80%
1-year: 9.00%

Karur Vysya Bank, a private sector lender, cut its 1-year MCLR by 20 bps to 9.80%, and 6-month MCLR by 10 bps. Other maturities remain unchanged. These took effect on 7 June.

RBI moves to quicken rate transmission:

The central bank also trimmed the Cash Reserve Ratio (CRR) by 100 bps in phases, bringing it to 3% of net demand and time liabilities — a level seen only during abnormal economic conditions. This move aims to boost liquidity and accelerate the pass-through of policy rate changes to borrowers and savers.

In a key signal, the RBI also shifted its stance from “accommodative” to “neutral”, hinting that the space for further rate cuts may be limited unless the macroeconomic environment shifts again.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
RBI announces repo rate cut Jun 06, 2025, at 10:51 am
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm