Several public sector banks have revised their lending rates following the Reserve Bank of India’s recent monetary policy announcement. The central bank’s Monetary Policy Committee (MPC), chaired by Governor Sanjay Malhotra, unanimously voted to reduce the repo rate by 25 basis points to 5.25%. The policy stance remains neutral, leaving room for further adjustments depending on economic conditions.
Following the policy announcement, multiple state-owned lenders announced reductions in their benchmark lending rates linked to the repo rate.
Punjab National Bank (PNB)
Punjab National Bank revised its Repo Linked Lending Rate (RLLR) effective December 6, 2025.
- Previous RLLR: 8.35% (including 10 bps BSP)
- Revised RLLR: 8.10% (including 10 bps BSP)
The bank confirmed that its MCLR and Base Rate remain unchanged.
Bank of India
Bank of India also reduced its lending rate benchmark in line with the RBI move.
- Repo-Based Lending Rate (RBLR): Cut by 25 basis points
- New RBLR: 8.10%, effective December 5, 2025
The revision applies primarily to retail loan categories, including home loans.
Indian Bank
Indian Bank revised its repo-linked benchmark lending rate, with the change effective December 6, 2025.
- Previous rate: 8.20%
- Revised rate: 7.95%
According to the bank, this adjustment is expected to reduce borrowing costs, especially for longer-tenure loans such as housing loans. The revised benchmark will remain effective until the next scheduled review.
Bank of Baroda
Bank of Baroda reduced its Baroda Repo Based Lending Rate (BRLLR) following the repo rate cut.
- Previous BRLLR: 8.15%
- Revised BRLLR: 7.90%
- Effective from: December 6, 2025
The bank stated that the markup component remains unchanged at 2.65%.
With these revisions, borrowers with floating-rate loans linked to external benchmark lending frameworks may see adjustments in their EMIs based on their respective bank policies.
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