Following the repo rate hike of 50 basis points by the RBI on Friday, two leading banks namely Punjab National Bank and ICICI Bank hiked interest rate on loans. Repo rate is the rate at which RBI extends short term loan to banks and this time around the rate has been increased to a 3-year high of 5.4% in order to curb high inflation.
ICICI Bank External Benchmark Lending Rate w.e.f August 5, 2022
In a notification the lender said, “ICICI Bank External Benchmark Lending Rate (I-EBLR) is referenced to RBI policy repo rate with a mark-up over repo rate, “I-EBLR is 9.10 per cent p.a.p.m. (per annum payable monthly) effective August 5, 2022,” the private sector lender added.
External Benchmark Lending Rates (EBLR) are the lending rates decided by the banks considering external benchmarks such as repo rate. This is the minimum interest rate at which commercial banks can lend.
Earlier during the month, ICICI Bank also modified the MCLR or marginal cost of funds-based lending rate by 0.15% across all tenures ahead of the RBI MPC outcome.
Punjab National Bank External Benchmark linked lending rate
The state run lender PNB also hiked the repo or the external benchmark linked lending rate to 7.9%. Earlier the rate was at 7.4%. In a regulatory filing, the lender said, “Consequent upon an increase in repo rate by RBI, the Repo Linked Lending Rate (RLLR) has been revised from 7.40 per cent to 7.90 per cent with effect from August 8, 2022”.
So, the new increased PNB’s RLLR becomes effective from August 8, 2022.
For investment related articles, business news and mutual fund advise
You have already subscribed
Story first published: Saturday, August 6, 2022, 12:43 [IST]