Punjab National Bank, Indian Bank raise lending rates after RBI repo rate hike — Here's what this means for customers…

After the RBI raised its repo rate to 5.50%, Punjab National Bank, Indian Bank, Bank of Baroda, Bank of India, Indian Overseas Bank and Tamilnad Mercantile Bank increased their lending rates. Here's what this means for customers…

Hours after the Reserve Bank of India hiked its benchmark policy repo rate by 25 basis points (bps) to 5.50% on 7 October, a number of banks are increasing their lending rates from Thursday, according to a PTI report.

Among banks who increased lending rates include the Punjab National Bank (PNB), Indian Bank, Bank of Baroda (BoB), Bank of India (BoI), Indian Overseas Bank (IOB) and Tamilnad Mercantile Bank, the report added.

RBI hikes repo rate by 25 bps

Notably, the central bank made its first rate increase in four years, since 2023, by hiking interest rates by 25 bps from 5.25% to 5.50% today and RBI Governor Sanjay Malhotra signalled that further hikes could follow as rising inflation, and a weakening currency prompt a policy pivot, it said.