Bank of India increases lending rate by 10 basis points

Bank of India (BoI)

The state-owned Bank of India (BoI) announced a 10-basis-point increase in lending rates, making retail loans more expensive.

The lending rate rise comes ahead of the Reserve Bank of India’s monetary policy statement on April 5.

The bank said the new rate will take effect on April 1 in a regulatory filing on Saturday.

“The bank has increased the mark-up by 10 bps from the existing level of 2.75 per cent to 2.85 per cent, and with the present repo rate of 6.5 per cent, the repo-based lending rate (RBLR) will be 9.35 per cent,” it said.

In a separate filing, another public sector lender, Indian Bank, raised the lending rate linked to the base rate and the benchmark prime lending rate by 5 basis points.

The Indian Bank’s revised rates will be effective from 3rd April.

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