Indian Overseas Bank on Friday reduced its repo-linked lending rate, or RLLR, by 25 basis points.
The bank's existing RLLR for lending was 9.10%, and has been slashed to 8.85%, according to an exchange filing on Friday. The revised EBLR will be effective from Saturday, April 12. The decision comes after the Reserve Bank of India's Monetary Policy Committee reduced the repo rate to 6% from 6.25%,
The rate-setting panel, apart from lowering the benchmark repo rate, also changed its stance from neutral to accommodative. This suggested that the central bank was open to more rate cuts in the period ahead to support economic growth.
Following the rate cut, UCO Bank and Karur Vysya Bank Ltd. also reduced its repo-based lending rate by 25 basis points and 30 basis points respectively. Bank of India and Indian Bank also reduced their repo-linked lending rates.
Shares of Indian Overseas Bank closed 0.71% lower at Rs 34.93 apiece on the NSE, compared to a 1.92% rise in the benchmark Nifty 50. The stock has fallen 45.55% in the last 12 months and 32.52% year-to-date.
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