Public Sector Banks Lower Lending Rates Following RBI Policy Cut

Bank of India and UCO Bank have reduced their lending rates by 25 basis points following the RBI's policy rate cut. The rate change benefits both existing and new borrowers. Other banks are expected to follow suit. Bank of India's new rate is 8.85%, while UCO Bank's is 8.8%.

In a swift response to the Reserve Bank of India's policy rate cut announced Wednesday, Bank of India and UCO Bank have both slashed their lending rates by 25 basis points. The move is poised to provide significant financial relief to both existing and new borrowers.

The public sector banks disclosed their rate revisions through regulatory filings, attributing them to the RBI's earlier decision to lower the short-term lending rate, known as the repo rate. Bank of India confirmed its new Repo Based Lending Rate (RBLR) has decreased to 8.85% from the previous 9.10%.

Similarly, UCO Bank stated that its repo linked rate would drop to 8.8%, with the change set to take effect on Thursday. Market analysts anticipate that other banks will soon make similar rate reductions.

(With inputs from agencies.)