Union Bank of India, IOB cut lending rate by 50 bps
Union Bank of India and Indian Overseas Bank have reduced lending rates by 50 basis points, aligning with the RBI's recent rate moderation. This revision includes a decrease in the External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR), benefiting both new and existing retail and MSME borrowers. IOB's RLLR will decrease from 8.85% to 8.35%.
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Two state-owned lenders, Union Bank of India and Indian Overseas Bank (IOB), on Wednesday slashed lending rates by 50 basis points in line with the rate moderation done by RBI last week.These changes include downward revision of External Benchmark Lending Rate (EBLR) and Repo Linked Lending Rate (RLLR) by 50 basis points, the Union Bank said in a statement.With this move, Union Bank of India has completely aligned its EBLR and RLLR with the recent RBI rate cut which will be beneficial to new and existing retail (home, vehicle, personal, etc.) and MSME borrowers, it said.Asset Liability Management Committee (ALCO) in its meeting held on Wednesday has approved a reduction of Repo Linked Lending Rate (RLLR) by 50 basis points from 8.85 per cent to 8.35 per cent effective Thursday, IOB said in a statement.Following the RBI action, many banks have slashed lending rate remaining will follow suit soon.The RBI last week cut interest rates by a larger-than-expected 50 basis points, and unexpectedly reduced the cash reserve ratio for banks to make available more money to lend in a bid to boost the economy.The RBI's six-member monetary policy committee, headed by Governor Sanjay Malhotra and consisting of three external members, voted five to one to lower the benchmark repurchase or repo rate by 50 basis points to 5.5 per cent.It also cut the cash reserve ratio by 100 basis points to 3 per cent, adding Rs 2.5 lakh crore to already surplus liquidity in the banking system.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
36 minutes ago
- Hans India
HDB sets IPO price band at Rs 700-740
New Delhi: HDB Financial Services, a subsidiary of HDFC Bank, on Friday fixed a price band of Rs 700-740 per share for its Rs 12,500 crore company is expected to list on the BSE and NSE on July 2. At the upper end of the price band, the company is valued at nearly Rs 61,400 crore. HDB Financial Services' maiden public issue will open for subscription on June 25 and conclude on June 27, while the bidding for the anchor investor will open for a day on June 24, the company announced. The IPO is a combination of a fresh issue of equity shares worth Rs 2,500 crore and an Offer For Sale (OFS) of Rs 10,000 crore by promoter HDFC Bank. At present, HDFC Bank holds a 94.36 per cent stake in HDB Financial Services, a non-banking financial company (NBFC) arm of the bank. The company proposes to utilise the proceeds from the fresh issue to strengthen its Tier-I capital base. This will support future capital needs, including additional lending, to support business growth. The decision to list HDB Financial Services follows the Reserve Bank of India's mandate in October 2022, requiring NBFCs in the upper layer to list on the stock exchanges within three years. Last year, HDFC Bank's board approved a share sale worth Rs 12,500 crore, comprising Rs 10,000 crore OFS related to HDB Financial Services. After the proposed IPO, HDB Financial Services will continue to be a subsidiary of the bank, in compliance with the provisions of the applicable regulations. Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
Time of India
38 minutes ago
- Time of India
Maharashtra man, 83, loses Rs 1.2 crore to fake stock trading portal
Representative Image MUMBAI: An 83-year-old retiree from Dadar lost Rs 1.2 crore to a fake online stock trading platform that he was led to believe was linked to a reputable private financial institution, reports Ahmed Ali. He was led to believe he had made profits of Rs 15.4 crore. The complainant was targeted on May 2 after he clicked on an advertisement online, which led him to a WhatsApp group that purported to offer stock market investment tips. The group had 92 members, many of whom turned out to be fraudsters. Lured by promises of high returns, he made investments of Rs 1.2 crore in all in weeks. Cyber police's central division has lodged an FIR and is tracing the IP addresses of the fraudsters, gathering call records, and tracking digital and money trails. No arrest has been made yet.
Economic Times
41 minutes ago
- Economic Times
Capillary Technologies' DRHP highlights rising competition, AI impact on business
Customer engagement and loyalty tech provider Capillary Technologies' draft red herring prospectus (DRHP) highlights increasing competition to acquire and retain enterprise customers amid increasing impact of artificial intelligence (AI), challenging macroeconomic conditions and changing market dynamics. The Bengaluru-headquartered company filed its DRHP with the Securities and Exchanges Board of India on June 18, after it shelved its initial plans in 2021. It is looking to raise Rs 430 crore through its initial public offering this year. The company reported revenue of Rs 598 crore for 2024-25, up 13.9% from Rs 525 crore in the previous financial year, according to data from the DRHP. Enterprise customer retention Capillary Technologies lost three customers in 2022-23 and one each in 2023-24 and 2024-25. In the case of large enterprise customers, it is facing competition from firms that offer similar services targeting enterprise customers as they cut costs, restructure and develop products in-house. 'While the afore-mentioned instances did not materially impact our financial condition, we cannot assure you that our business, financial condition and results of operations will not be adversely affected in the future due to such instances,' the DRHP said. The AI impactIn the DRHP, the company said that AI – which has been mentioned 81 times, compared to 18 times in the draft red herring prospectus filed in 2021 – is complex and rapidly evolving, and that it faces significant competition in the market and from other companies regarding such technologies.'The adoption of Gen AI by various industries could lead to changes in our customers' operations. By adopting Gen AI, our customers may develop in-house capabilities which could impact the extent to which customers rely on us and reduce their need for our services,' it addition, the company said it is incorporating AI in its solutions and business operations. 'Our research and development of such technology remains ongoing. AI presents risks, challenges, and unintended consequences that could affect our and our customers' adoption and use of this technology,' it said. R&D, acquisitions To maintain its competitive edge, the company has been investing significantly in AI. It invested 21.50% of its revenue in 2024-25, lower than 28.04% in the previous fiscal in research, design and development. According to the DRHP, the company will invest Rs 151 crore in research and development. It will also focus on inorganic growth through acquisitions to enter new business areas as a strategic initiative, the company said, albeit without disclosing the expenditure earmarked for this.
