Indian Overseas Bank (IOB), a prominent public sector lender, has announced a 25 basis points reduction in its Repo Linked Lending Rate (RLLR), bringing it down from 9.10 percent to 8.85 percent. The rate cut is effective immediately, the bank stated in an official release issued on Saturday.
Also Read: BoB Cuts Lending Rates by 25 bps After RBI Policy Move; Keeps MCLR Unchanged
This move follows the Reserve Bank of India‘s recent Monetary Policy Committee (MPC) decision to reduce the Policy Repo Rate from 6.25 percent to 6 percent. The central bank’s rate cut comes amid rising global economic uncertainties, particularly following the United States’ announcement of 27 percent tariffs on Indian imports by President Donald Trump last week.
In response, the Asset Liability Management Committee (ALCO) of Indian Overseas Bank convened on April 11 and resolved to pass on the benefit of the reduced policy rate to its customers. The adjustment in the RLLR aligns with the bank’s policy of promptly responding to monetary policy changes and supporting borrowers with reduced interest burdens.
The Chennai-headquartered bank said that the revised rate structure aims to enhance credit affordability and encourage economic activity during a time of global economic flux.
