Allahabad Bank to offer repo linked retail, small biz loans from Oct

State-owned Allahabad Bank on Wednesday said it has launched repo-linked retail and small business loans.

The decision has come in line with the Reserve Bank of India guidelines of September 4, 2019, Allahabad Bank said in a regulatory filing.

The bank had decided to launch retail loans and loans to micro & small enterprises linked with external benchmark rates published by Financial Benchmarks India Pvt LTd (FBIL), it said.

"Presently, the bank has identified RBI's repo rate and three month MIBOR as the benchmark rates," it said.

Further, all the saving bank deposits of Rs 40 lakh and above, long tenure fixed deposit, bulk deposits and flexi fix deposits will be linked with external benchmark rate i.e. RBI's repo rate, it added.

The products will be available for general public with effect from October 1, 2019, Allahabad Bank said.

Stock of Allahabad Bank closed 2.31 per cent down at Rs 31.70 on the BSE.