Banks start raising their lending rates for external benchmark loans

ICICI Bank raises its rate to 8.10%; BoB ups repo-linked rate to 6.90%

Consequent to the 40 basis point hike in the repo rate announced by the Reserve Bank of India (RBI) on Wednesday, large banks such as ICICI Bank and Bank of Baroda have raised their lending rates by an equal amount on loans linked to the external benchmark.

ICICI Bank on Thursday raised its external benchmark lending rate by 40 basis points to 8.10 per cent while Bank of Baroda increased its repo-linked lending rate to 6.90 per cent. The public sector lender has withdrawn the interest rebates for home and car loans. They were introduced to push retail credit.

RBL Bank’s repo-linked