Oriental Bank of Commerce revises interest rate on rupee export credit

NEW DELHI: Oriental Bank of Commerce has announced revision in its lending rate by lowering its rupee export credit by 25 basis points.

The benefit of the lowered rates would become available on all current and future rupee export credit from July 1 onwards, stated SL Bansal, chairman and managing director, OBC.

This decision came after the Reserve Bank of India (RBI) surged the eligibility limit for export credit refinance.

On June 18, RBI said that the scheduled banks (excluding RRBs) from June 30 will possess the eligible for refinance to an extent of 50% of their outstanding export credit as compared to 15% in the past.

Bansal stated that since the public-sector lender will be eligible for bagging an extra Rs 875 crore of export refinance after RBI’s mid-quarter policy announcement, it decided to help the exporters and announced cut in rupee export credit by 25 basis points.