The Indian Overseas Bank (IOB) has announced a significant reduction in its Repo Linked Lending Rate (RLLR) following a meeting of its Asset Liability Management Committee (ALCO) on Wednesday. The RLLR has been cut by 50 basis points, from 8.85% to 8.35%. This change is set to take effect on June 12, 2025.
The decision to reduce the RLLR was made in response to the Reserve Bank of India’s (RBI) latest Monetary Policy Committee (MPC) meeting, in which the Repo Rate was also reduced by 50 basis points. The Repo Rate is the rate at which the RBI lends money to commercial banks, and a reduction in this rate typically leads to a decrease in lending rates for banks.
The reduction in RLLR by IOB is expected to have a positive impact on borrowers, as it will result in lower interest rates on loans. This could lead to an increase in borrowing and spending, which could in turn boost economic growth. The move is also likely to make IOB’s loans more competitive in the market, which could help the bank to attract more customers.
The reduction in RLLR is a significant development, as it indicates that IOB is committed to passing on the benefits of the RBI’s monetary policy decisions to its customers. The bank’s decision to reduce its lending rates is also in line with the RBI’s efforts to boost economic growth and increase lending in the country.
Overall, the reduction in RLLR by IOB is a positive development for borrowers and the economy as a whole. It is likely to lead to an increase in borrowing and spending, which could help to boost economic growth. The move is also a testament to IOB’s commitment to providing competitive and affordable loan products to its customers. With the new RLLR taking effect on June 12, 2025, borrowers can look forward to enjoying lower interest rates on their loans.