A view of Bank of Baroda which has announced cut in repo linked lending rate by 50 basis points on June 8, 2025.
| Photo Credit: The Hindu

Following Reserve Bank of India’s (RBI) decision to reduce the policy repo rate by 50 basis points to 5.5%, Bank of Baroda, India’s second largest public sector banks, has announced the reduction in its Repo Linked Lending Rate by 50 basis points with immediate effect.

“The bank’s Repo Linked Lending Rate now stands at 8.15%,” it said in a statement.

“With this, Bank of Baroda has fully effected on the RBI rate cut in its Repo Linked Lending Rate,” it added.

The RBI has made it clear to the banks to transmit the reduction in repo rate to borrowers. But it has left it to the banks to decide the timing and the quantum of the interest rate cut. 

Some small banks had announced a rate cut immediately after the announcement of the monetary policy on Friday.