6 banks have now raised your loan rate -- here is what you can do about it
Every fact links to its official source.
60-second morning update
Change: 6 banks have now raised their repo-linked lending rates after RBI's 25 basis point hike: Punjab National Bank, Indian Bank, Bank of Baroda, Bank of India, Indian Overseas Bank and Tamilnad Mercantile Bank, all effective 8 October.
Impact: Punjab National Bank's rate is now 8.35 percent, up from 8.10 percent. Indian Bank's is 8.20 percent, up from 7.95 percent. Bank of Baroda's is 8.15 percent, up from 7.90 percent. Bank of India and Indian Overseas Bank are both at 8.35 percent.
Action: Credit and branch staff: check which of these 6 banks each repo-linked loan customer banks with, and tell them their EMI or loan tenure changes at their next reset date, not today.
Change: RBI's own rule says that when a bank raises your rate this way, it must give you 3 choices: raise the EMI, keep the EMI and extend the tenure, or switch to a fixed rate.
Impact: You can also prepay part or all of your loan at any time during the remaining tenure. Banks must tell you about this in writing, and show it on a quarterly statement.
Action: See today's Banker Problem Solver below for the exact steps to tell a customer who asks about this.
Change: Two more bank boardroom moves got RBI's approval this week. HDFC Bank's incoming MD and CEO, Anup Bagchi, is set to take charge on 27 October, and Kotak Mahindra Bank's incoming MD and CEO, Anup Kumar Saha, got RBI's nod for a 3-year term starting 1 January 2027.
Impact: HDFC Bank's shareholders are still voting on Bagchi's appointment by e-voting, open until 6 November. His 27 October start date is subject to that result.
Action: People and industry staff: note both moves on your watchlist. Nothing has reversed; the shareholder vote is simply still open.
Change: Reminder: Sunday, 11 October, is a normal weekly off for banks across India, same as every Sunday. There is no special bank holiday today.
Impact: Branches are shut today, as every Sunday. UPI, mobile banking, net banking and IMPS all keep working as usual.
Action: Branch staff: if a customer calls about today's closure, tell them it is the normal Sunday off, and digital banking works fine.
What it means for your job
Branch and retail: If a customer with a repo-linked loan calls worried about their EMI, tell them the change happens only at their next reset date, not today.
Credit and lending: 6 banks have now repriced after RBI's hike: Punjab National Bank, Indian Bank, Bank of Baroda, Bank of India, Indian Overseas Bank, Tamilnad Mercantile Bank, all from 8 October.
Compliance and risk: Check your bank is giving every affected borrower RBI's 3 required choices in writing, not just applying the new rate quietly.
People and industry: HDFC Bank's Anup Bagchi (from 27 October, shareholder vote still open) and Kotak Mahindra Bank's Anup Kumar Saha (from 1 January 2027) both got RBI's approval this week.
Careers and learning: Both incoming CEOs this week built their careers partly outside their new bank. See today's career note below.
Banker problem solver
A customer with a floating-rate loan asks: my bank just raised my rate -- what are my options?
6 banks raised their repo-linked lending rates this week, after RBI's rate hike on 7 October. RBI has a fixed rule for what the bank must offer when this happens.
- Tell them the new rate applies from their loan's own reset date, not from today -- ask them to check their last loan statement for that date.
- RBI's rule gives them 3 choices at reset: raise the EMI amount, keep the EMI the same and extend the number of EMIs left, or switch to a fixed rate for the rest of the loan.
- They can also prepay part or all of the loan at any point during the remaining tenure, for this reason.
- Tell them the bank must send written notice of any EMI or tenure change, and a quarterly statement showing the loan's interest rate, EMIs left, and amount recovered so far.
- If they are unsure which choice suits them, tell them to ask the branch to show the total interest cost under each option before they decide.
Fraud and risk check
Check today: With rate hikes in the news, callers may claim they can 'freeze your old EMI' or 'stop your rate from rising' if you share an OTP or pay a fee. No bank or RBI official ever needs your OTP or a payment for this. Tell customers to hang up and call the number printed on their passbook or card.
Career and technology help
Growth reflection: this week's 2 new bank CEOs
This week RBI approved 2 new bank chiefs. HDFC Bank's Anup Bagchi was Managing Director of ICICI Prudential Life Insurance before this move. Kotak Mahindra Bank's Anup Kumar Saha had already joined Kotak from outside the bank in March 2026, before being named CEO. Neither built their whole career at the bank they will now lead. The lesson for your own career: skills that work across different companies can matter as much as years spent at just one place.
One important number
6
The number of banks that have now raised their repo-linked lending rate this week, following RBI's 7 October rate hike: Punjab National Bank, Indian Bank, Bank of Baroda, Bank of India, Indian Overseas Bank and Tamilnad Mercantile Bank.
Important dates
21 October 2026 — RBI publishes the minutes of this month's rate meeting.
27 October 2026 — Anup Bagchi is set to take charge as HDFC Bank's MD and CEO, subject to the shareholder vote below.
6 November 2026 — HDFC Bank's shareholder e-voting on Anup Bagchi's appointment closes.
1 January 2027 — Anup Kumar Saha's 3-year term as Kotak Mahindra Bank's MD and CEO begins.
2 to 4 December 2026 — RBI's next rate decision.
One question
Has your own bank already raised your loan's interest rate this week? ['Yes, it already went up', 'Not yet, but I expect it soon', 'My loan is not linked to the repo rate', 'Not sure']