Good news for home loan borrowers: Following the Reserve Bank of India’s (RBI) recent 25-basis-point (bps) repo rate cut, six major public sector banks — State Bank of India ( SBI), Punjab National Bank (PNB), Indian Bank, UCO Bank, Bank of India, and Bank of Baroda — have slashed lending rates.
The Reserve Bank of India (RBI) reduced the repo rate by 0.25% for the second time in a row during its latest Monetary Policy Committee (MPC) meeting, which concluded on April 9, 2025. With this cut, the repo rate now stands at 6.25%.
A decline in the repo rate typically leads to a reduction in EMIs for borrowers with floating interest rate loans. As most Indian banks use the repo rate as an external benchmark to determine lending rates, a cut in the repo rate directly results in lower interest rates for borrowers.
SBI, BoB, PNB, Indian Bank, UCO Bank, Bank of India reduce lending rates
Effective April 15, 2025, the bank’s EBLR (External Benchmark Based Lending Rate), which currently stands at 8.90%, has been revised to 8.65%. SBI has also revised its RLLR (Repo Linked Lending Rate), bringing it down from 8.50% at present to 8.25% starting 15th April
Bank of Baroda (BoB) has reduced its external benchmark-linked lending rates by 25 basis points, applicable to loans under the retail and MSME segments. However, the bank has kept its Marginal Cost of Funds-Based Lending Rate (MCLR) unchanged, with the key one-year MCLR—used for pricing personal and auto loans—remaining at 9%.
Punjab National Bank (PNB) has revised its Repo Linked Lending Rate (RLLR) from 9.10% to 8.85%, effective April 10, 2025, while maintaining its MCLR and base rate at existing levels. In a regulatory filing, PNB stated:
“The Exchange is hereby informed that Bank has revised RLLR from 9.10% (including BSP of 20 bps) to 8.85% (including BSP of 20 bps) with effect from 10.04.2025. Further, there is no change in the existing MCLR and base rate.”
Indian Bank has reduced its Repo Linked Benchmark Lending Rate (RBLR) to 8.70% from 9.05%, effective April 11.
UCO Bank also announced a revision in its repo-linked rates, bringing down the UCO Float rate—used as a benchmark for various loan products—to 8.80%, effective April 10. Other key rates including MCLR, TBLR, and base rate have been kept unchanged.
Similarly, Bank of India revised its RBLR to 8.85% from 9.10%, effective April 9, in response to the RBI’s monetary policy decision.
RBI cuts repo rates
In its latest Monetary Policy Committee (MPC) meeting, which concluded on April 9, 2025, the Reserve Bank of India (RBI) announced a 25 basis points (0.25%) cut in the repo rate, marking the second consecutive reduction in the key policy rate. With this move, the repo rate now stands at 6.25%, down from the previous 6.50%.
“As announced in the Monetary Policy Statement dated April 09, 2025, it has been decided by the Monetary Policy Committee (MPC) to reduce the policy repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.25 per cent to 6.00 per cent with immediate effect,” said RBI Governor Sanjay Malhotra.
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