Indian Overseas Bank hikes repo based lending rate to 7.25% from May 10

Indian Overseas Bank has revised the external benchmark linked lending rate to 7.25 per cent from May 10, the bank said on Monday.

"Our bank has revised the Repo Linked Lending Rate (RLLR) to 7.25 per cent (ie 4.40 per cent +2.85 per cent = 7.25 per cent) with effect from May 10, 2022," the state-owned lender said in a regulatory filing.

Earlier in the day, HDFC Bank, Canara Bank, Bank of Maharashtra and Karur Vysya Bank also said they have revised their lending rates based on marginal cost of funds (MCLR) and repo rate.

With the RBI's decision to raise the policy rate by 0.40 per cent to 4.40 per cent last week, several banks have revised their lending rates based on repo and marginal cost of funds.