Indian Overseas Bank Lowers Repo-Linked Lending Rate By 50 Basis Points
The rate is lowered by 50 basis points and set to be effective from Thursday.
Indian Overseas Bank has revised its repo-linked lending rate to 8.35% from 8.85%, according to an exchange filing on Wednesday.
The rate is lowered by 50 basis points and set to be effective from Thursday, IOB said.
Last week, the RBI cut interest rates by a larger-than-expected 50 basis points, and unexpectedly reduced the cash reserve ratio for banks to make available more money to lend in a bid to boost the economy.
The RBI's six-member monetary policy committee, headed by Governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5%. It also cut the cash reserve ratio by 100 basis points to 3%, adding Rs 2.5 lakh crore to already surplus liquidity in the banking system.
With the latest reduction, the RBI has now cut interest rates by a total of 100 basis points in 2025, starting with a quarter-point reduction in February, the first cut since May 2020 and another similar-sized cut in April.
Shares of Indian Overseas Bank closed 1.91% lower at Rs 39.58 apiece on the National Stock Exchange before the announcement, compared to a 0.15% advance in the benchmark Nifty at close on Wednesday. The stock has declined 40.51% in the last 12 months and 23.53% on a year-to-date basis
