New Delhi, June 12 -- Union Bank of India, Canara Bank, and Indian Overseas Bank (IOB) have implemented a reduction of 50 basis points (bps) in their external benchmark lending rates, responding to the Reserve Bank of India's policy rate cut announced on Friday.

The adjustment directly affects retail loans and lending to Micro, Small, and Medium Enterprises (MSME), which are linked to these benchmark rates.

The rate reductions result in repo-linked lending rates of 8.25 percent for both Canara Bank and Union Bank of India, while IOB's rate will stand at 8.35 percent.

These revised rates became effective from June 11 for Union Bank of India, with Canara Bank and Indian Overseas Bank implementing their changes from June 12.

The banks in...