Banking
HDFC Bank, PNB, BoB, and 4 Other Lenders Raise Lending Rates Effective October 8
8 October 2026 · The Financial Express
After the RBI increased the repo rate by 25 basis points, several banks including HDFC Bank, PNB, BoB, Indian Bank, Bank of India, Indian Overseas Bank, and Tamilnad Mercantile Bank have raised their lending rates effective October 8. This will make loans more expensive for borrowers.
Points to Remember
- RBI raised the repo rate by 25 basis points, leading to an increase in lending rates by banks.
- HDFC Bank cut its MCLR by 5-15 basis points across all tenures, effective October 7, bringing rates to 7.75%-8.55%. (Note: Despite the headline, HDFC Bank reduced MCLR.)
- PNB revised its Repo Linked Lending Rate (RLLR) from 8.10% to 8.35%, including a BSP of 0.35%; MCLR and Base Rate remain unchanged.
- Indian Bank increased its Repo Linked Benchmark Lending Rate (RBLR) to 8.20% from 7.95%.
- Bank of Baroda raised its Repo Based Lending Rate to 8.15% from 7.90%.
Why it matters
Loan EMIs for borrowers are set to rise, especially for those with repo-linked loans. Expect customer inquiries about revised repayments and consider proactive communication.
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