RBI Repo Rate Hike: These Banks Have Increased Repo-Linked Lending Rate

New Delhi: After the Reserve Bank of India (RBI) raised the repo rate on October 7, 2026, many banks increased their interest rates on some loan categories. RBI Governor Sanjay Malhotra on Thursday announced hiked the repo rate by 25 basis points, raising it from 5.25% to 5.50%.

List of banks which have raised their repo-linked lending rates (RLLR/RBLR): Bank of India (BoI), Punjab National Bank (PNB), Indian Bank, Bank of Baroda (BoB), Indian Overseas Bank (IOB), and Tamilnad Mercantile Bank have increased. The new rates are effective from October 8.

HDFC Bank reduced its one-month MCLR by 15 basis points. The country’s largest private sector bank cut its MCLR from 7.75 per cent to 7.90%. The overnight MCLR reduced from 7.90% to 7.80%. The 3-month MCLR stands at 7.95%, and the 6-month rate is now 8.15%.

One-year MCLR decreased to 8.30%, two-year to 8.40% and three-year MCLR has come down from 8.60% to 8.55%.

It may be noted that changes in MCLR can directly impact floating-rate loans linked to this benchmark.

 

Hours after RBI announced repo rate hike, Punjab National Bank (PNB) raised its Repo Linked Lending Rate (RLLR) from 8.10% to 8.35%. This includes a BSP of 0.35%. The new rate is effective from October 8. The public sector bank has made no changes in its Marginal Cost of Lending Rate i.e. MCLR and Base Rate.

 

Indian Bank raised its Repo-Based Lending Rate (RBLR) by 25 basis points. The bank increased its RBLR to 8.20% up from 7.95%. This rate came into effect on October 8, 2026. The government-controlled lender said that this change has been made after the RBI Monetary Policy Committee unanimously decided to increase 25 basis points in the repo rate by RBI MPC.

 

Bank of Baroda (BoB) has increased 25 basis points in its RBLR from 7.90% to 8.15%. The bank’s decision to raise the RBLR can have a direct impact on the interest rates of loans which are linked to RBLR.

 

Bank of India (BoI) and Indian Overseas Bank (IOB) announced to raise their RBLR to 8.35%. The new rates are effective from October 8.

Bank of India stated that the decision was taken following RBI’s announcement of repo rate hike.

Tamilnad Mercantile Bank

Private sector Tamilnad Mercantile Bank increased its Repo-Linked Lending Rate by 25 basis points. The rate now stands at 8.50%.