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Bank of Maharashtra cuts retail loan rates by up to 50 bps post RBI move
Bank of Maharashtra on Thursday announced a reduction of up to 50 basis points in interest rates on retail loans, including home, car, education and other loans linked to the Repo Linked Lending Rate (RLLR).
According to the bank, the revised rates are effective from 10 June and align with the recent rate reduction by the Reserve Bank of India (RBI). The bank stated that home loans will now start at 7.35 per cent and car loans at 7.7 per cent.
'This benefit of reduced interest rates reflects the bank's commitment to offer the best financing solutions to all its customers and help them fulfil their dreams,' the bank said. It added, 'In the current interest rate landscape, the bank is making retail loans cheaper to bring in cheer among its customers.'
Banking industry
Bank of Baroda has also reduced its Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points across various tenors ranging from one month to one year.
Additionally, three other public sector banks—Canara Bank, Union Bank of India and Indian Overseas Bank—have cut their External Benchmark Lending Rates (EBLR) by 50 basis points. Canara Bank and Union Bank's repo-linked lending rates now stand at 8.25 per cent, while Indian Overseas Bank's RLLR is 8.35 per cent. These rates apply to retail loans, including home, vehicle and personal loans, as well as loans extended to the micro, small and medium enterprises (MSME) sector.
These rate adjustments follow the Reserve Bank of India's decision on Friday to reduce the benchmark repo rate by 50 basis points to 5.5 per cent. The six-member Monetary Policy Committee, chaired by Governor Sanjay Malhotra, voted five to one in favour of the rate cut. The RBI also lowered the Cash Reserve Ratio (CRR) by 100 basis points to 3 per cent in phases, which is expected to inject ₹2.5 lakh crore into the banking system.
Inflation data
India's retail inflation eased to 2.82 per cent in May from 3.16 per cent in April, primarily due to a slower pace of food price increases, according to government data released on Thursday. In rural areas, headline inflation fell to 2.59 per cent in May from 2.92 per cent in April, while food inflation based on the Consumer Food Price Index declined to 0.95 per cent from 1.85 per cent during the same period.
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