Bank of India has revised its repo-based lending rate after the RBI cut the repo rate by 50 basis points to 5.5%.
The public sector bank has cut its RBLR rate by 50 bps to 8.35%. The earlier rate stood at 8.85%, according to an exchange filing on Friday.
The Reserve Bank of India's Monetary Policy Committee, led by Governor Sanjay Malhotra, reduced the key lending rate. This reduction aims to stimulate economic activity by making borrowing cheaper for businesses and consumers.
It also announced a reduction in the Cash Reserve Ratio by 100 basis points, lowering it from 4% to 3%. This cut will be implemented in four staggered stages and is expected to release primary liquidity of Rs 2.5 lakh crore into the banking system.
The RBI has shifted its policy stance from 'accommodative' to 'neutral'. This change indicates a more balanced approach, suggesting that future rate cuts or hikes will be data-driven and dependent on evolving economic conditions.
Shares of Bank of India closed 0.1% higher at Rs 124.3 apiece on the NSE, compared to a 1.02% advance in the benchmark Nifty on Friday. It has risen 5.54% in the last 12 months and 22.06% on a year-to-date basis.
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