Bank of India Slashes Lending Rate to 8.10% After RBI Trims Repo Rate

Bank of India has reduced its Repo Based Lending Rate (RBLR) to 8.10%, effective December 5, 2025.  

The update was shared through an exchange filing after the Reserve Bank of India cut the benchmark repo rate. The bank stated that the revision has been implemented immediately.  

Details of the Revised Components 

The filing shows that the repo rate used in the RBLR formula has been lowered from 5.50% to 5.25%, a cut of 25 basis points. The markup remains unchanged at 2.85%.  

As a result, the effective RBLR has moved from 8.35% to 8.10%, showing the same 25 bps adjustment. The bank’s document includes a table that outlines the updated components.  

Reason for the Adjustment 

Banks revise external benchmark linked lending rates soon after changes in the RBI’s policy rates. Since the repo rate acts as the reference point for several floating-rate retail and MSME loans, a shift in the benchmark directly influences lending rates.  

Bank of India’s revision follows this transmission mechanism, aligning its lending benchmark with the new policy rate. 

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Bank of India Share Price Performance  

As of December 8, 2025, 11:27 am, Bank of India share price was trading at ₹138.88, a 2.96% decrease from the previous closing price. 

Conclusion 

Following the RBI’s repo rate cut, Bank of India has lowered its RBLR, bringing down the benchmark rate used for several floating-rate loans. 

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