From PNB to Bank of Baroda: These 5 banks raise lending rates after RBI rate hike

Hours after the RBI raised the repo rate to 5.50%, several banks moved to increase their lending rates, making loans costlier for borrowers.Borrowers may have to pay more for loans as banks begin passing on the impact of the RBI’s latest repo rate hike. (Photo: GettyImages)New Delhi,Oct 8, 2026 12:06 ISTThe Reserve Bank of India (RBI) raised the repo rate by 25 basis points to 5.50% on Wednesday, October 7. Hours after the rate hike, several banks started raising their benchmark lending rates, making loans slightly more expensive for borrowers.Punjab National Bank (PNB), Bank of India (BoI), Indian Bank, Bank of Baroda (BoB), and Indian Overseas Bank (IOB) are among the lenders that have announced changes to their lending rates, according to a PTI report.The rate revisions are linked to the RBI's decision to increase the repo rate from 5.25% to 5.50%.PNB RAISES REPO-LINKED LENDING RATEPNB has increased its Repo Linked Lending Rate (RLLR) from 8.10% to 8.35%, effective October 8. In a corporate filing, the bank said the revision followed the RBI's repo rate hike. The revised RLLR includes a Bank Strategic Premium (BSP) of 0.35%.PNB, however, has kept its Marginal Cost of Lending Rate (MCLR) and Base Rate unchanged.BANK OF INDIA RAISES LENDING RATE TO 8.35% Bank of India has also revised its Repo Based Lending Rate (RBLR) following the RBI's decision.The bank's RBLR has increased from 8.10% to 8.35%, effective October 7.According to the bank's filing, the repo rate component has risen from 5.25% to 5.50%, while the markup has remained unchanged at 2.85%.INDIAN BANK REVISES REPO-LINKED RATEIndian Bank has increased its Repo Linked Benchmark Lending Rate (RBLR) from 7.95% to 8.20%.The revised rate will apply from October 8 until the next review.The bank said the change follows the 25-basis-point increase in the RBI's policy repo rate. The policy repo rate for loans linked to the repo rate has also moved up from 5.25% to 5.50%.BANK OF BARODA RAISES BRLLRBank of Baroda has increased its Baroda Repo Based Lending Rate (BRLLR) by 25 basis points to 8.15%, effective October 8.The bank's BRLLR was earlier 7.90%. Its filing shows that the repo rate component has increased from 5.25% to 5.50%, while the markup has remained unchanged at 2.65%.INDIAN OVERSEAS BANK RAISES RLLRIndian Overseas Bank (IOB) has also revised its Repo Linked Lending Rate (RLLR).The bank has increased the rate from 8.10% to 8.35%, with effect from October 8.The revised rate will remain in place until further review.What does this mean for borrowers?The increase in benchmark lending rates could make borrowing more expensive, particularly for borrowers whose loans are linked to external benchmarks such as the repo rate.For existing borrowers, the impact will depend on the type of loan and the benchmark to which the loan is linked. Borrowers with repo-linked loans are likely to see their interest rates rise as banks pass on the higher policy rate.Other lenders are also expected to announce changes to their benchmark lending rates following the RBI's repo rate hike.For people planning to take a new loan, the higher lending rates could mean a higher interest outgo. Existing borrowers with floating-rate loans may also see changes in their EMIs or loan tenure, depending on how their bank passes on the rate increase.- Ends