Indian Bank slashes repo-linked benchmark rate 

Indian Bank announced a reduction in its Repo Linked Benchmark Lending Rate from 9.05 % to 8.70 % effective April 11.

The RBLR is being reduced by 0.35% (35 basis points), directly reflecting the decrease in the RBI’s repo rate, the Chennai-headquartered public sector lender said on Wednesday. The move will lower borrowing costs for the customers with loans linked to RBLR such as home loans and business loans. Depending on their loan terms, customers may benefit from reduced EMIs (Equated Monthly Instalments) or a shorter loan tenure, it said in a release.

In a stock exchange filing, besides the reduction in the RBLR, Indian Bank said the Repo Benchmark Rate for all REPO linked loans is being revised from 6.25% to 6%.

Earlier in the day, the Reserve Bank of India’s (RBI) announced cutting the repo rate by 25 basis points to 6% in the latest Monetary Policy Committee (MPC) meeting.