Chennai (Tamil Nadu) [India], Oct 10 (ANI): Government-owned Indian Overseas Bank (IOB) on Thursday announced a reduction in its interest rate for the retail segment (housing, vehicle, education and clean loans) as well as micro and small enterprises by 25 basis points.
The revised repo-linked lending rate will be 8 per cent from November 1, down from 8.52 per cent earlier, the lender said in a statement. This is in line with the recent decision of the Reserve Bank of India (RBI) to reduce the repo rate by 25 basis points.
Earlier, IOB had linked repo linked lending rate for these loans effective from October 1.
The bank lowered its net loss of Rs 342 crore in the April to June quarter of current fiscal year versus a loss of Rs 919 crore in Q1 of FY19.
Many banks are saddled with huge non-performing assets (NPAs) due to large exposure in stressed sectors like real estate, power, telecom and airlines.
The lenders are lowering interest rates to increase credit take off amid a severe slowdown in many sectors of the economy resulting from falling domestic consumption and private investments. (ANI)