Indian Bank Raises Lending Rate by 10 bps

New Delhi, Mar 31 (PTI) State-owned Indian Bank on Monday announced an increase in lending rate linked to repo rate by 10 basis points to 9.05 per cent, making retail loans expensive.

The Asset Liability Management Committee (ALCO) of the bank has reviewed the Marginal Cost of funds-based Lending Rate (MCLR), Treasury Bills Linked Lending Rates (TBLR), Base Rate, Benchmark Prime Lending Rate (BPLR) and Repo Linked Benchmark Lending Rates (RBLR) and decided for revision in TBLR, Base Rate, BPLR and RBLR, Indian Bank said in a regulatory filing.

Repo Linked Benchmark Lending Rates (RBLR) has been raised to 9.05 per cent from the existing 8.95 per cent, it said.

The lending rate hike comes despite the Reserve Bank cutting repo rate from 6.5 per cent to 6.25 per cent last month.

However, TBLR rates have been reduced by 5 basis points to 6.5 per cent for a maturity period ranging from 6 months to 3 years.

The Chennai-based lender also lowered its base rate by 5 basis points to 9.80 per cent.

The revised TBLR, Base Rate, BPLR and RBLR are effective from April 3, 2025, it said.