After the announcement of RBI, these big banks got a setback, loans became expensive

After the meeting of the Monetary Policy Committee (MPC meeting), the Reserve Bank of India has increased the repo rate (RBI repo rate) by 0.50 percent. Its effect is visible only after a day. Private sector bank ICICI Bank has increased the interest rates of loans. Along with this, State Bank Punjab National Bank (PNB) […]
 


After the announcement of RBI, these big banks got a setback, loans became expensive

After the meeting of the Monetary Policy Committee (MPC meeting), the Reserve Bank of India has increased the repo rate (RBI repo rate) by 0.50 percent. Its effect is visible only after a day. Private sector bank ICICI Bank has increased the interest rates of loans. Along with this, State Bank Punjab National Bank (PNB) has also increased the interest rate for loans. Reserve Bank Governor Shaktikanta Das on Friday announced an increase of 0.50 percent in the repo rate, after which the repo rate has reached 5.40 percent.

I-EBLR . Increase

ICICI Bank said in a notification that the External Benchmark Lending Rate (I-EBLR) has been clubbed with the enhanced repo rate of the Reserve Bank. ICICI Bank said, I-EBLR has now been reduced to 9.10 per cent per annum or monthly. The new rate is effective from 5 August 2022. State-owned bank Punjab National Bank has increased the rates of loans linked to the repo rate. Due to which the debt will now become expensive. EBLR is the interest rate below which banks do not allow loans.

PNB hikes repo link lending rate

Punjab National Bank has revised the external benchmark, the repo linked lending rate (RLLR), to 7.90 per cent. PNB said in a regulatory filing that after the hike in the repo rate by the Reserve Bank, the lending rate linked to the repo has been increased from 7.40 per cent to 7.90 per cent. The new rates will be applicable from 8 August 2022.

Earlier this month, ICICI Bank revised the MCLR ahead of the announcement of a hike in the repo rate by the RBI. Banks keep their loan rates linked to the repo rate. Because of this, the change in the repo rate affects the interest of the loan.

trying to control inflation

The central bank has increased the repo rate to control inflation. Retail inflation has been consistently above 7 per cent. Reserve Bank Governor Shaktikanta Das said that inflation is at a record level across the world. India is facing high rate of inflation. June was the sixth consecutive month that inflation exceeded the Reserve Bank’s upper limit.