The Reserve Bank of India (RBI) reduced the repo rate from 6.5 percent to 6.25 percent last month. Despite the RBI cutting the repo rate, Indian Bank has decided to increase the loan interest rates.
There is a bad news for the people who take loans. Public sector Indian Bank has announced a hike in the interest rates of loans on Monday. This government bank has announced a 0.10 percent hike in the interest rates of retail loans linked to RBI’s repo rate. After this hike, the interest rate of loans taken from Indian Bank will become 9.05 percent. The bank said that the increased interest rates will be applicable from Thursday, April 3.
Customers taking retail loans will be affected
This decision of Indian Bank will directly affect the customers taking retail loans. Indian Bank said in a notice to the stock market on Monday that the bank’s asset liability management committee (ALCO) reviewed the marginal cost of funds based interest rate (MCLR), treasury bill based interest rate (TBLR), base rate, standard prime lending rate (BPLR) and repo based benchmark interest rate (RBLR). The bank has decided to revise TBLR, base rate, BPLR and RBLR. With this, the repo based benchmark interest rate (RBLR) will increase from the current 8.95 percent to 9.05 percent.
Despite the reduction in repo rate, loans became expensive
Let us tell you that the Reserve Bank of India (RBI) reduced the repo rate from 6.5 percent to 6.25 percent last month. Despite the RBI cutting the repo rate, Indian Bank has decided to increase the loan interest rates. However, the treasury bill based interest rate for the maturity period of 6 months to 3 years has been reduced by 0.05 percent to 6.5 percent. This Chennai-based government bank has also reduced its base rate by 0.05 percent to 9.80 percent.
Big fall in Indian Bank shares
A terrible decline is being seen in the stock market today. Meanwhile, a big decline is also being recorded in the shares of Indian Bank. On Tuesday at 12.09 pm, the shares of Indian Bank were trading at Rs 533.45 with a decline of 1.62% (Rs 8.80) on the BSE. Let us tell you that the 52 week high of Indian Bank shares is Rs 626.35 while its 52 week low is Rs 474.05. According to BSE, the current market cap of this government bank is Rs 71,995.22 crore.
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