RBI Repo Rate Hike: PNB, Bank of India, Indian Bank Raise Lending Rates

The Reserve Bank of India has raised its benchmark interest rate, or Repo Rate, by 25 basis points to 5.50%. This is the first rate hike in nearly four years since February 2023.

The RBI has also indicated that further policy changes may be required in view of rising inflation and a weakening currency. Following the Repo Rate hike, several major banks have announced increases in their lending rates.

Bank of India Raises RBLR to 8.35%

Bank of India has increased its Repo-Based Lending Rate, or RBLR, from 8.10% to 8.35%. The revised rate came into effect on October 7, 2026.

The Repo component of the RBLR has increased from 5.25% to 5.50%, while the Mark-up remains unchanged at 2.85%.

The change is part of the bank's Automatic Transmission Mechanism and directly affects borrowers whose loans are linked to the Repo Rate.

Punjab National Bank Raises RLLR

Punjab National Bank has increased its Repo Linked Lending Rate, or RLLR, from 8.10% to 8.35%. The new rate will be effective from October 8.

However, PNB has said that there will be no change in its Marginal Cost of Lending Rate, or MCLR, and Base Rate.

Indian Bank Raises RBLR to 8.20%

Chennai-based government lender Indian Bank has raised its Repo Linked Benchmark Lending Rate, or RBLR, from 7.95% to 8.20%.

The revised rate will be effective from October 8 following the 25-basis-point increase in the Policy Repo Rate announced by the RBI's Monetary Policy Committee.

Indian Overseas Bank Raises RBLR

Indian Overseas Bank has also increased its Repo-Based Lending Rate. The revised RBLR has been set at 8.35%, effective from October 8.

Bank of Baroda Raises Repo-Based Lending Rate

Government-owned Bank of Baroda has increased its Repo-Based Lending Rate from 7.90% to 8.15%, marking a 25-basis-point increase.

Impact on Loan Borrowers

The increase in lending rates could make loans more expensive for borrowers whose loans are linked to the Repo Rate. Depending on the loan terms, borrowers may face higher EMIs or a longer loan tenure.