Revision in Repo Rate & RLLR w.e.f 12.06.2025
Awaiting price reaction for this filing.
Indian Overseas Bank has revised its interest rates following the RBI's Monetary Policy Committee decision (June 4-6, 2025) to cut the Repo Rate by 50 basis points. The bank's External Benchmark Lending Rate (EBLR) has been reduced by 50 bps, effective June 12, 2025. The Repo Linked Lending Rate (RLLR) has been revised from 8.85% to 8.35%, while the Repo Rate has moved from 6.00% to 5.50%. This is a routine pass-through of the central bank's policy rate cut to the bank's lending benchmarks.
Lower lending rates may compress the bank's net interest margins in the short term, but cheaper loans could drive higher credit demand and support loan growth. Existing borrowers linked to EBLR will benefit from reduced EMIs, while depositors may see lower returns on savings accounts.