Indian Bank Announces Significant Rate Cut Following RBI's Move

In response to the Reserve Bank of India's (RBI) decision to cut the repo rate by 25 basis points, Indian Bank has announced a reduction in its Repo Linked Benchmark Lending Rate (RBLR) by 0.35%, from 9.05% to 8.7%. This adjustment is set to take effect from April 11, 2025, promising lower borrowing costs for customers.

Impact on Borrowers: Customers with loans tied to the RBLR, such as home and business loans, may see reduced equated monthly instalments (EMIs) or shorter loan tenures, depending on their loan terms.

CEO Binod Kumar on the Rate Cut

Indian Bank's MD & CEO, Binod Kumar, hailed the RBI's rate reduction to 6% as a timely intervention. "This cut is expected to stimulate demand for home, auto, and personal loans, particularly in tier 2 and tier 3 markets where sensitivity to interest rates is higher," Kumar stated. He also noted the 18% year-over-year growth in retail loans and suggested that lower rates could further boost consumption and economic momentum.