• Source:JND
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State-run Bank of Baroda (BOB) and private sector lender HDFC Bank has reduced their lending rates post RBI's decison to cut repo rate by 50 basis points. BOB on Sunday said it has reduced its benchmark lending rate, linked to the repo rate, by 50 basis points in line with the RBI rate cut.

Meanwhile, private sector HDFC Bank has reduced its marginal money-based lending rate (MCLR) by 10 basis points during this period, benefiting benchmark-linked borrowers.

In line with the Reserve Bank of India (RBI) policy repo rate cut, the Bank of Baroda said in a statement that it has reduced its repo-linked lending rate (RLLR) by 50 basis points with effect from June 7.

The bank's RLLR is 8.15 per cent. With this, the bank has fully reflected the RBI rate cut in its RLLR, he said.

According to the HDFC Bank website, the new MCLR rate will come into effect from June 7. With the cut, overnight and one-month rates have been cut by 10 basis points to 8.90 per cent.

Three-month interest rates have been cut by 10 basis points to 8.95 per cent, while six-month rates have been cut by 10 basis points to 9.05 per cent, down by 10 basis points.

Two-year interest rates and three-year lending rates have been cut to 9.10 per cent from 9.20 per cent earlier.

Earlier on Friday, the RBI cut interest rates by 50 basis points more than expected and unexpectedly reduced the cash reserve ratio as banks made more money available to lend to boost the economy.

The six-member RBI monetary policy committee, headed by Governor Sanjay Malhotra and comprising three external members, voted five to one to cut the benchmark repurchase or repo rate by 50 basis points to 5.5 per cent. It cut the cash reserve ratio by 100 basis points to 3 per cent, adding Rs 2.5 lakh crore to the existing surplus liquidity in the banking system.

With the latest cut, the RBI has now cut interest rates by a total of 100 basis points in 2025, starting with a quarter-point cut in February - the first cut since May 2020 - and another cut of a similar magnitude in April.

(With Inputs From PTI)