Bank of India passes on RBI's rate cut
Bank of India (BoI) has passed on the RBI’s 75-basis-point (100bps = 1 percentage point) repo rate cut to borrowers whose loans are linked to the bank’s external benchmark rate. BoI has also cut its marginal cost of lending rate (MCLR) by up to 25bps. “The external benchmark lending rate, which is linked to the RBI’s repo rate, has been reduced by 75bps to 7.25%. With this, the bank has passed on the benefit of the rate cut announced by the RBI on March 27, 2020 to its home, vehicle and small & medium enterprise borrowers,” the bank said. The reduction in interest rates will be effective from April 1, 2020. SBI was the first to bring down its lending rate after the RBI cut rates on Friday. Most of the other public sector banks will also announce rates effective April 2020, which will make it available to customers of the merging banks as well.
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