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News Topical, Digital Desk : With the Reserve Bank cutting the repo rate more than expected on Friday, banks have also started announcing reduction in their loan rates. Yesterday, many banks have cut their loan rates. On Friday evening, Indian Bank announced a rate cut. The announcement came after the market closed, so the effect of the news can be seen on the stock in the next session. Recently, MK Global Financial had issued an investment advice in the stock of Indian Bank. The cut in repo can lead to an increase in the demand for loans, which can benefit the banks.
What information has the bank given
Indian Bank said in the information sent to the stock market that in view of the reduction of half percent in the policy repo rate by the Monetary Policy Committee, the bank has revised the repo benchmark rates. Repo linked benchmark landing rates have been reduced from 8.7 percent to 8.2 percent. The new rates will be effective from June 9, 2025. The rate cut is being considered positive for everyone from banks to the real estate sector as there is hope of increasing demand due to cheap loans. Its effect can also be seen on stocks. Earlier in a report of June 5, MK Global Financial had advised buying in Indian Bank and gave a target of 675 for the stock. According to the report, the asset quality of the bank is good. At the same time, the bank is in a much better position regarding margin. Currently the stock is trading below the level of 635. In a month, the stock has registered a gain of 13 percent.
Which other banks have reduced rates? Apart from Indian Bank, Karur Vysya Bank, Punjab National Bank, UCO Bank and Bank of India have announced reduction in rates. On Friday itself, the Reserve Bank has announced a reduction of half percent in the repo rates. After this, the repo rates have come down to 5.5 percent. So far this year, the Reserve Bank has reduced the rates by one percent through three cuts.
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