State-run bank, Punjab National Bank (PNB) on Friday said that it has cut repo based lending rate by 25 basis points (bps). After this reduction, the repo based lending rate has come down to 6.55 percent. The bank has said in a regulatory filing that the repo-linked lending rate (RLLR) has been reduced from 6.80 per cent to 6.55 per cent. The new rates are applicable from 17 September 2021.
Repo-linked lending rate came in October 2019
The repo-linked lending rate (RLLR) was introduced in October 2019. These are floating rate based personal or retail loans, which are linked to external benchmarks such as the repo rate of the Reserve Bank of India (RBI). Shares of Punjab National Bank closed at Rs 39.70, down 5.02 per cent on the Bombay Stock Exchange on Friday.
What is Repo Rate?
The repo rate is the rate at which the Reserve Bank of India (RBI) lends to commercial banks for their short-term needs. Recently, Punjab National Bank (PNB) said that its board has approved raising up to Rs 6,000 crore through issuance of bonds. This decision has been taken in the meeting of the Board of Directors on Friday.
