PNB Share Price News: PNB, Bank of Baroda and Others Raise Loan Rates After RBI Hike
The PNB share price is in focus after Punjab National Bank became one of the first lenders to raise loan rates following the RBI's policy decision. PNB raised its Repo Linked Lending Rate (RLLR) from 8.10% to 8.35%, effective October 8, 2026, Business Today reported, citing a regulatory filing.
Bank stocks actually rose on the day of the hike. PNB closed at ₹114.59 on the NSE on October 7, up 2.39%, according to NSE bhavcopy data. So why do bank shares often gain when rates rise, and what does this mean for your loan? Here's a clear explanation.
Key Takeaways
- The RBI raised the repo rate by 25 basis points to 5.50% on October 7, its first hike in nearly four years.
- PNB lifted its RLLR to 8.35% from 8.10%; its MCLR and Base Rate are unchanged.
- Bank of Baroda, Indian Bank, Bank of India, IOB and Tamilnad Mercantile Bank also raised rates.
- A 25 bps rise adds roughly ₹794 a month to the EMI on a ₹50 lakh, 20-year home loan, by our calculation.
Which Banks Have Raised Loan Rates After the RBI Hike?
| Bank | Benchmark | Old rate | New rate |
|---|---|---|---|
| Punjab National Bank | RLLR | 8.10% | 8.35% |
| Bank of Baroda | RBLR | 7.90% | 8.15% |
| Indian Bank | RBLR | 7.95% | 8.20% |
| Bank of India | RBLR | – | 8.35% |
| Indian Overseas Bank | RBLR | – | 8.35% |
| Tamilnad Mercantile Bank | RLLR | 8.25% | 8.50% |
Source: Business Today, October 8, 2026. Rates effective October 8, 2026.
Business Today added that other public and private sector lenders are expected to follow in the coming days. Karur Vysya Bank and Bandhan Bank have also raised rates, according to a separate Business Today report.
What Is RLLR, and Why Did It Change So Fast?
The Repo Linked Lending Rate is a bank's lending benchmark that's tied directly to the RBI's repo rate. When the repo rate moves, the RLLR moves by the same amount, usually within days. Most floating-rate home loans taken since October 2019 are linked to such an external benchmark.
That's why PNB's RLLR rose by exactly 25 basis points, matching the RBI's hike. PNB's MCLR, an older internal benchmark based on the bank's own funding costs, hasn't changed yet. Loans linked to MCLR adjust more slowly, typically at their reset date.
How Much Will Your Home Loan EMI Rise?
Here's a simple example. Take a ₹50 lakh home loan for 20 years:
| Interest rate | Monthly EMI |
|---|---|
| 8.50% | About ₹43,391 |
| 8.75% (after 25 bps hike) | About ₹44,186 |
| Increase | About ₹794 a month |
Our calculation, for illustration only. Your actual rate depends on your bank, loan type and credit profile.
Over the full 20 years, that adds up to roughly ₹1.9 lakh in extra interest if rates stay at the new level. Many banks extend the loan tenure instead of raising the EMI, which keeps monthly payments the same but increases total interest. It's worth checking with your bank which option applies to you.
Why Did PNB Shares Rise After the Rate Hike?
It may seem odd that bank stocks gained on a day when loans got costlier. Here's the logic. When the repo rate rises, banks can raise rates on their repo-linked loans almost immediately. But deposit rates usually go up more slowly. For a while, the gap between what a bank earns on loans and pays on deposits, known as the net interest margin, can widen.
Here's our view, though. That benefit tends to fade. Banks eventually have to raise deposit rates to attract funds, and higher loan rates can slow borrowing. Business Today noted the RBI signalled more hikes could follow, which means borrowers and bank investors should prepare for a longer tightening cycle. Read our RBI policy explainer for the full context.
PNB Share Price: Where the Stock Stands
| Metric | Value |
|---|---|
| Close (October 7, 2026) | ₹114.59 |
| Previous close | ₹111.92 |
| Day's range | ₹110.55 – ₹115.10 |
| Volume | 1,82,75,898 shares |
| 52-week high | ₹135.15 (January 19, 2026) |
| 52-week low | ₹98.50 (May 18, 2026) |
Source: NSE bhavcopy data.
Track the live PNB share price on GoPocket, and compare it with SBI and Punjab & Sind Bank. For private-bank context, see our HDFC Bank update and Axis Bank Q2 update.
What to Watch Next
- More bank rate hikes: SBI, HDFC Bank and ICICI Bank announcements.
- Deposit rates: whether banks raise FD rates, which would squeeze margins.
- PNB's Q2 FY27 results: net interest margin and loan growth.
- Next RBI meeting: whether further hikes follow.
Sources
- NSE India, bhavcopy data for PNB, retrieved October 8, 2026
- Business Today, Loans get costlier: PNB, BOB others hike rates after RBI's 25-bps repo rate hike, October 8, 2026
- Business Today, Stocks in focus, October 8, 2026
Disclaimer: This article is for information and educational purposes only. It is not a recommendation to buy, sell or hold PNB shares or any other security, or financial advice on loans. EMI figures are illustrative. Please consult your bank or a SEBI-registered investment adviser before making decisions.
