ICICI bank, BOB revise lending rates after RBI’S repo rate hike

NEW DELHI: ICICI Bank has revised the external benchmark lending rate (EBLR) to 8.10 per cent, and Bank of Baroda (BOB) raised the rate to 6.90 per cent after the RBI hiked the key repo rate.

In an out of turn Monetary Committee Meeting (MPC), the Reserve Bank on Wednesday announced to hike the benchmark repo rate — the short term lending rate it charges to banks — by 0.40 per cent to 4.40 per cent with immediate effect, aimed at taming the rising inflation caused by the global geopolitical situation.

The rate increase in the EBLR will push up the cost for most of the personal loans, auto and home loans for customers.

RBI policy repo rate effective May 4, 2022, is 4.40 per cent, ICICI Bank said.

“ICICI Bank External Benchmark Lending Rate (I-EBLR) is referenced to RBI policy repo rate with a mark-up over repo rate. I-EBLR is 8.10 per cent p.a.p.m. effective May 4, 2022,” the bank said.

The EBLR moves up or down in accordance with the movement in the repo rate.

State-owned Bank of Baroda also revised the external benchmark linked lending rate, with effect from May 5, 2022.

“For retail loans applicable BRLLR is 6.90 per cent with effect from May 5, 2022 (current RBI repo rate:4.40 per cent plus mark up of 2.50 per cent),” Bank of Baroda said.

Bank of Baroda had introduced Baroda Repo Linked Lending Rate (BRLLR) in respect of all retail lending products from October 2019.

The country’s largest lender State Bank of India (SBI) charges the EBLR at 6.65 per cent plus the credit risk premium, with effect from April 1, 2022.

EBLR is a sum of external benchmark rate (EBR) and credit risk premium (CRP).

Last month, State Bank of India hiked the marginal costbased lending rate (MCLR) by 10 basis points across all tenures.

With the revision, the benchmark one-year MCLR — against which most of the consumer loans are priced — increased to 7.10 per cent per annum.

SAN FRANCISCO: Elon Musk has secured about $7.1 billion of new financing commitments for his proposed $44 billion takeover of Twitter Inc., the company said in a filing Thursday.

The commitments come as the Tesla Inc. billionaire marshals capital to bankroll one of the largest tech industry acquisitions to date. The investors named in the filing include Binance, Brookfield, Fidelity Management & Research, Lawrence J. Ellison Revocable Trust and Qatar Holding, Bloomberg reported.

Twitter shares rose 2.3 per cent in pre-market trading. Musk is now in discussions with Twitter co-founder Jack Dorsey on contributing some of his shares toward the acquisition. The company also said that a previously announced margin loan committed toward the deal was reduced to an aggregate principal amount of $6.25 billion from $12.5 billion.

The world’s wealthiest man reached an agreement on April 25 to acquire Twitter using a financing plan that’s alarmed some Tesla investors.