Banks follow RBI cue on rate cuts

PNB, BOB, UCO Bank, and others reduce lending rates after the MPC cut the repo rate by 50 bps

- AATHIRA VARIER

State-owned Punjab National Bank (PNB), Bank of Baroda (BOB), UCO Bank, Bank of India (BOI), and Karur Vysya Bank have reduced their external benchmark-linked lending rates after the Reserve Bank of India's (RBI's) rate-setting committee—the Monetary Policy Committee (MPC)—cut the repo rate by 50 basis points (bps) last week.

PNB revised its repo-linked lending rate (RLLR) from 8.85 per cent to 8.35 per cent, with effect from June 9. However, its marginal cost of funds-based lending rate (MCLR) remains unchanged.