Major Banks Slash Lending Rates: BoB, PNB, UCO, HDFC, BoI & Karur Vysya Bank Cut RRLR, MCLR Loan Rates

Following the Reserve Bank of India's (RBI) decision to cut the repo rate on June 6, 2025, several major banks have swiftly responded by slashing their benchmark lending rates. In alignment with the monetary easing, six prominent banks have announced reductions in their repo rate-linked loan rates by up to 50 basis points, while also making notable adjustments to their Marginal Cost of Funds-based Lending Rates (MCLR), some by as much as 10-20%.

Bank of Baroda (BOB)'s Latest Interest Rates

The Bank of Baroda (BOB) has announced a reduction in its Repo Linked Lending Rate (RLLR) by 50 basis points, bringing it down to 8.15%. This change has been effective from 7 June. The decision aligns with the RBI recent policy repo rate cut, which was larger than anticipated.

"With the revision, the bank has fully passed on the benefit of the RBI's rate reduction," stated BoB in a release on Sunday.

HDFC Bank's New Interest Rates

HDFC Bank has implemented a 10 basis point reduction in its MCLR across all tenures, with the revised rates taking effect from June 7, 2025. The new structure reflects the following:

• Overnight & One-Month MCLR: 8.90%
• Three-Month MCLR: 8.95%
• Six-Month & One-Year MCLR: 9.05%
• Two-Year & Three-Year Tenures: 9.10%

These adjustments will benefit borrowers with MCLR-linked loans. For repo rate-linked loans, the bank is expected to pass on the full 50 basis point cut in the upcoming month, as it has consistently done following previous RBI decisions.

Punjab National Bank Home Loan Rates

Punjab National Bank (PNB) has also reduced its Repo Rate Linked Lending Rate (RRLR) by up to 50 basis points, effective June 9, 2025. Following the adjustment, home loan rates now start at an attractive 7.45%, while vehicle loan rates begin at 7.80% per annum.

UCO Bank MCLR

UCO Bank has implemented broad-based reductions across all its MCLR tenures, effective from June 10, 2025.

The revised rates are as follows; the Overnight MCLR is now 8.15%, the One-Month MCLR is 8.35%, the Three-Month MCLR stands at 8.50%, the Six-Month MCLR has been set at 8.80%, and the One-Year MCLR is now 9.00%. Additionally, the bank has reduced its Repo Rate Linked Lending Rate (RRLR) by 50 basis points to 8.30%, effective from June 9, 2025.

Additionally, UCO Bank has brought down its RRLR by 50 basis points to 8.30%, effective from June 9.

Bank of India Revised Rates

Bank of India has followed suit, announcing a 50 basis point reduction in its RRLR, now offering repo-rate-linked loans starting from 8.35%. The revised rates came into effect on June 6, 2025, immediately after the RBI's policy announcement.

Karur Vysya Bank MCLR-linked Lending Rates

Karur Vysya Bank has revised its MCLR-linked lending rates as well. The Six-Month MCLR has been reduced by 10 basis points to 9.80%, and the One-Year MCLR has been lowered by 20 basis points, also to 9.80%. These revised rates have been effective since June 7, 2025.