Unlike Other Lenders, Canara Bank Cuts Lending Rate by 15% Amid Repo Rate Hike by RBI

Reserve Bank of India (RBI) hiked the repo rate the sixth time to 6.50% in the February 6-8 Monetary Policy Committee meeting to rein high inflation.

New Delhi: Public sector lender Canara Bank has reduced lending rates by 15 basis points despite hike in repo rate by Reserve Bank earlier this week. The revised Repo Linked Lending Rate (RLLR) of the bank with effect from February 12, Canara Bank said in a regulatory filing on Friday.

Following the rate cut, the new RLLR will be 9.25 per cent compared to the existing 9.40 per cent. On Wednesday, the Reserve Bank of India (RBI) hiked the benchmark policy rate by 25 basis points to 6.5 per cent, citing sticky core inflation.

It was the sixth time the interest rate has been hiked by the RBI since May last year, taking the total quantum of increase to 250 basis points.