New Delhi : Punjab National Bank (PNB) has increased its Repo Linked Lending Rate (RLLR) by 25 basis points following the Reserve Bank of India’s decision to raise the policy repo rate.
The state-owned lender has revised its RLLR from 8.10% to 8.35%, with the new rate taking effect from October 8, 2026.
According to the bank’s regulatory disclosure, the revised RLLR includes a Business Strategy Premium of 0.35%.
The latest revision comes after the RBI increased its repo rate on October 7, 2026, and reflects the transmission of the central bank’s monetary-policy decision into PNB’s repo-linked lending benchmark.
PNB RLLR Revised by 25 Basis Points
PNB has increased its repo-linked lending benchmark by 0.25 percentage point, or 25 basis points.
The rate movement is as follows:ParticularEarlierRevisedChange PNB Repo Linked Lending Rate (RLLR) 8.10% 8.35% +25 bps Business Strategy Premium 0.35% 0.35% No change Effective date — October 8, 2026 —
The bank has retained the Business Strategy Premium at 0.35% while increasing the overall RLLR to 8.35%.
New RLLR Effective October 8
The revised rate will become effective on October 8, 2026, one day after the RBI’s repo-rate decision.
The increase means that eligible loans linked to PNB’s RLLR could see a corresponding increase in their applicable interest rates when the relevant rate-reset provisions take effect.
However, the exact impact on an individual borrower will depend on the specific loan agreement, applicable spread, reset frequency and other terms and conditions.
MCLR and Base Rate Remain Unchanged
PNB has also clarified that its Marginal Cost of Funds Based Lending Rate (MCLR) and Base Rate remain unchanged.
This distinction is important because not all loans are linked to the same benchmark.
While borrowers whose loans are linked to the repo-based RLLR may be affected by the latest revision, loans priced using MCLR or the Base Rate will continue to follow their respective benchmark rates unless the bank announces a separate revision.
What Is the Repo Linked Lending Rate?
The Repo Linked Lending Rate is a lending benchmark linked to the RBI’s policy repo rate.
The repo rate is the rate at which the RBI provides short-term funds to eligible financial institutions against eligible securities. Changes in this policy rate can influence borrowing costs across the financial system.
When a bank increases a repo-linked lending benchmark following an RBI rate hike, borrowers with loans tied to that benchmark may experience higher interest costs after the applicable reset.
The actual change in a customer’s loan rate can vary depending on the spread and other components specified in the loan agreement.
Possible Impact on Borrowers
The latest PNB rate revision is particularly relevant for customers with floating-rate loans linked to the bank’s repo-based benchmark.
An increase in the lending rate can affect either the equated monthly installment (EMI), the remaining loan tenure, or both, depending on how the lender applies the rate change and the borrower’s loan terms.
For example, if a borrower has a floating-rate loan linked to the RLLR, the higher benchmark may result in an increase in the effective interest rate when the loan is reset.
Borrowers should review their loan statements or contact PNB to determine the precise impact on their individual accounts.
Why the RBI Repo Rate Matters
The RBI’s repo rate is one of the central tools used to influence monetary conditions in the economy.
Changes in the policy rate can affect the cost at which banks obtain short-term funds and can subsequently influence lending and deposit rates.
Repo-linked lending rates are designed to transmit these changes more directly to borrowers.
PNB’s latest decision therefore represents a direct transmission of the 25-basis-point increase in the RBI’s policy rate into its RLLR.
Regulatory Disclosure to Stock Exchanges
PNB has formally notified the stock exchanges about the revised lending rate.
The intimation has been submitted to the National Stock Exchange of India Limited (NSE) and BSE Limited under the applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations.
The regulatory filing ensures that investors and other market participants receive timely information regarding the change in the bank’s lending benchmark.
Comparison With Other Recent Bank Rate Revisions
The PNB announcement comes alongside similar lending-rate adjustments by other major banks following the RBI’s repo-rate move.
Bank of Baroda, for example, has revised its Baroda Repo Based Lending Rate (BRLLR) from 7.90% to 8.15%, effective October 8, 2026.
These revisions illustrate how changes in the RBI’s policy rate can pass through to banks’ benchmark lending rates.
However, the actual lending rates offered to customers can differ significantly between banks and loan products because of different spreads, premiums and pricing structures.
Key Details at a Glance
- Bank: Punjab National Bank
- Benchmark: Repo Linked Lending Rate (RLLR)
- Previous RLLR: 8.10%
- Revised RLLR: 8.35%
- Increase: 25 basis points
- Effective date: October 8, 2026
- Business Strategy Premium: 0.35%
- MCLR: Unchanged
- Base Rate: Unchanged
- Regulatory disclosure: Submitted to NSE and BSE
- Reason for revision: RBI repo-rate increase
What This Means for PNB Customers
The immediate effect of the announcement will be most relevant to borrowers whose loans are benchmarked to PNB’s RLLR.
Customers with such loans should check the applicable reset date and loan terms to understand when the revised rate will be reflected in their accounts.
For borrowers whose loans are linked to MCLR or the Base Rate, PNB has stated that those benchmarks remain unchanged for now.
This means the impact of the latest announcement will not necessarily be uniform across all PNB borrowers.
Conclusion
Punjab National Bank has raised its Repo Linked Lending Rate from 8.10% to 8.35%, effective October 8, 2026, following the RBI’s 25-basis-point repo-rate increase.
The revised RLLR includes a 0.35% Business Strategy Premium, which remains unchanged. At the same time, PNB has confirmed that its MCLR and Base Rate have not been revised.
The move is expected to affect borrowers whose loans are linked to PNB’s repo-based benchmark, although the precise impact will depend on individual loan agreements and reset provisions.
The latest announcement highlights the continuing transmission of monetary-policy changes into bank lending rates and comes as Indian lenders adjust their benchmark rates following the RBI’s latest policy decision.
