New Delhi, June 8, 2025 — Following the Reserve Bank of India’s (RBI) recent move to slash the policy repo rate by 50 basis points to 5.5%, Bank of Baroda, the country’s second-largest public sector bank, has announced a corresponding reduction in its Repo Linked Lending Rate (RLLR) by 50 basis points.
With immediate effect, the bank’s RLLR now stands at 8.15%, according to an official statement. “With this, Bank of Baroda has fully effected the RBI rate cut in its Repo Linked Lending Rate,” the statement added.
The RBI, in its monetary policy announcement on Friday, urged banks to pass on the benefits of the rate cut to borrowers. While the central bank has emphasized transmission of the repo rate reduction, it has left the decision on the timing and scale of the cuts to individual banks.
Bank of Baroda’s quick action places it among the first major lenders to respond to the RBI’s policy decision. Several smaller banks also began announcing rate cuts shortly after the central bank’s announcement.
The rate cut is expected to provide relief to borrowers and stimulate credit demand amid ongoing efforts to boost economic activity.