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Bank of India and Indian Bank Hike Lending Rates Following RBI Repo Rate Increase
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CNBC TV18•07-10-2026, 17:00
Bank of India and Indian Bank Hike Lending Rates Following RBI Repo Rate Increase
- •Bank of India raised its Repo Based Lending Rate by 25 basis points to 8.35% effective October 7.
- •The repo rate component for Bank of India increased from 5.25% to 5.50%, while the mark-up remained at 2.85%.
- •Indian Bank also increased its RBLR by 25 basis points to 8.20% effective October 8, following the RBI policy rate hike.
- •The revisions will increase borrowing costs for loans linked to the RBLR depending on individual loan agreements.
- •Shares of Bank of India closed higher by 0.94% at 133.80 rupees, and Indian Bank shares rose 2.24% to 827.55 rupees on the stock exchanges.
Key Questions Answered
Bank of India raised its Repo Based Lending Rate by 25 basis points to 8.35%, effective October 7, 2026, after the RBI's repo rate hike to 5.50%.
Indian Bank's revised RBLR of 8.20% becomes effective on October 8, 2026, and will remain in place until the next review.
The Reserve Bank of India increased the policy repo rate by 25 basis points, bringing the current repo rate to 5.50%.
