Overview
- The RBI cut the repo rate by 25 basis points to 5.25% and kept a neutral stance, alongside liquidity steps including planned open-market purchases and a $5 billion dollar–rupee swap.
- Bank of Maharashtra reduced RLLR-linked retail loans by 25 basis points with home loans now starting at 7.10% and car loans at 7.45%, effective Saturday.
- Punjab National Bank, Bank of India, Indian Bank, and Bank of Baroda also lowered their RLLR by 25 basis points, with reported benchmarks now at 8.10% for PNB, 7.95% for Indian Bank, and 7.90% for Bank of Baroda.
- Banks largely left MCLR unchanged to protect corporate lending margins, keeping the reductions focused on retail products tied to external benchmarks.
- Public sector lenders typically transmit repo changes immediately, while some banks use monthly or quarterly resets, so many private and foreign bank customers will see adjustments later; a 25-basis-point cut on a ₹50 lakh, 25-year home loan can trim the EMI or shorten the tenor with sizable interest savings.