Four significant public sector banks have changed their lending rates in response to the Reserve Bank of India’s (RBI) recent move to lower the repo rate by 50 basis points, which reflects the central bank’s monetary easing stance.
In the face of persistent difficulties, the action seeks to boost credit expansion and sustain economic activity. One of the first banks to lower its repo-linked lending rate (RLLR) by 50 basis points was Bank of Baroda, which did so on June 7, 2025, when it dropped to 8.15%.
Following suit, Punjab National Bank (PNB) maintained its Marginal Cost of Funds based Lending Rate (MCLR) at 8.35% but reduced their RLLR by 50 basis points to 8.35% as of June 9. Likewise, on June 6, Bank of India reduced its repo-based lending rate by 50 basis points to 8.35%.
UCO Bank reduced its MCLR by 10 basis points over a range of tenures, with the one-year MCLR now at 9%. It also reduced its RLLR by 50 basis points starting on June 9 and now stands at 8.30%.
Beginning on June 7, HDFC Bank, a prominent private sector lender, likewise lowered its MCLR by 10 basis points throughout all tenures. The overnight and one-month MCLR rates decreased to 8.9% as a result of this modification.
Bringing a Big Smile on the Face of Existing Borrowers
Floating-rate loans, which are required by RBI regulations to be adjusted in accordance with the benchmark repo rate, are immediately impacted by the RBI’s repo rate drop. Lower interest rates will therefore be an immediate benefit for current borrowers with floating-rate loans.
However, because banks are anticipated to adjust the spreads they charge over the repo rate in order to remain profitable, new borrowers might not fully benefit from the rate decrease. For instance, Bank of Baroda’s home loan rates for first-time borrowers now start at 8% following the change.
Due to this selective adjustment, current borrowers stand to benefit more than new ones, as many of them previously obtained loans at reasonable rates as a result of market competition. A number of public sector banks, including Union Bank of India, Bank of India, Bank of Maharashtra, and Central Bank of India, were providing home loans with interest rates as low as 7.85% for loans up to INR 30 lakh prior to the RBI rate drop.
Home loans were available at 7.90% from other lenders such as Canara Bank, Indian Bank, Indian Overseas Bank, and UCO Bank; Canara’s rate applied to loans above INR 75 lakh, while others applied to smaller credit amounts.
FDs will Fetch Lesser Returns Now
Lenders are also anticipated to lower returns on fixed deposits (FDs) in order to maintain profitability in the face of rate cuts and increasing liquidity in the banking system. In the short term, this change might make fixed deposits less alluring to savers.
While trying to promote economic growth through lower borrowing costs, the RBI’s drop of the repo rate and the banks’ subsequent adjustments show continuous efforts to balance credit availability, profitability, and competitive pressures in the Indian banking sector.
Banks play an important role in the economic development of the financial sector of India. They are running a business that involves all the transactions done by every person. As banks are running a business, sometimes they earn and sometimes they lose. The very common cause of banks losing money is the inability to collect the money-back which was distributed as and if they have a concentration of loans in a particular business segment that falls in hard times, those losses are even more severe.
In 2018, Punjab National Bank, one of India’s largest public-sector banks experienced a fraud of INR 11,400 crores at its Brady House branch located in Mumbai. The accused person was Mr Nirav Modi, a well-renowned diamond maker of India. Here’s the complete story of how the PNB scam was unfolded.
Nirav Modi is an Indian fugitive businessman; he is the founder of Firestar Diamond International and his uncle Mehul Choksi is the chairman of Gitanjali Group. These two companies were involved in the Diamond business and had a retail chain of 4000+ stores in India.
Nirav was brought up in Belgium and did his early schooling at the Wharton School at the University of Pennsylvania. He came back to Mumbai and started with his family business of jewellery manufacturing.
Nirav Modi’s Business of Luxury Diamond
In 1999, he founded Firestar. After working for years and getting experience in the business Nirav in 2008 launched a diamond store bearing his name in New Delhi. Seeing and attracting a huge crowd he thought of opening more stores and started the 2nd store in Mumbai followed by 17 more stores. Nirav launched his stores globally with stores in New York and Hong Kong city.
Nirav Modi Store
According to news, his company had a presence in 12 countries with 30 boutiques in 2018. Firestar is the only diamond manufacturing company in India to source the coveted Argyle pink diamonds, found only in Western Australia.
At this time Nirav was also looking to expand its product line with more affordable pieces. He became a lot popular after designing his “Golconda Lotus Necklace” with an old, 12-carat, pear-shaped diamond as a centerpiece in the year 2010. The diamond had previously been sold in the 1960s and had to be repolished.
Golconda Lotus Necklace
Stores were running very well and were recognized as a theme of pure luxury, many Indian celebrities were doing the advertisement for Nirav Modi’s jewellery. Nirav Modi was also featured in the Forbes list of Indian Billionaires in 2013. To run such a vast and huge business globally he was always in the need of funds which he took from small public sector banks.
How did Nirav Modi Avail Loans from Banks?
At first, he started with a small number of loans which he was able to repay the bank within the time limit. The first fraud started in 2010 when Nirav took the loan with the help of a fake letter of undertaking issued by PNB bank at its Brady House branch. Letter of Undertaking is said to be a sort of guarantee that is issued by a banking entity to the concerned party for attaining short-term credit from the overseas branch of an Indian bank.
How Nirav Modi Operated the PNB Scam?
Nirav thought of this as an easy way to obtain short-term credit. He then started giving fake Lou’s to the bank and used to obtain a lump sum amount of money. Nirav managed to get 1,212 more such guarantees in the next 6-7 years.
The Letters of Understanding were signed in favour of Indian bank branches for the one-year import of pearls, with the Reserve Bank of India’s guidelines allowing for a total of 90 days from the date of shipping. The guideline mentioned in the letters were ignored by overseas branches of Indian banks. They disregarded providing any documents or information with PNB that had been made accessible to them by the companies when they applied for loans.
When PNB approached banks to provide a 100% cash margin, the bank argued they had availed this facility in the past as well. The transactions were never registered in the bank’s main system, leaving PNB management in the dark for years. This suspected there could be a fraud that led to them digging further into the transaction history.
Later it was found out that PNB employees were also involved in this process of providing fraud loans. They got the commission from Nirav and used to do the job for him. PNB employees used the SWIFT network to send messages to Allahabad Bank and Axis Bank regarding financial requirements.
At that time they found that these letters were on a fraud basis and the money was transferred to Dummy accounts of firms that were inactive in business and were acting according to the command of Nirav Modi. A total of INR 6,400 crore acquired through PNB Lou’s was transferred abroad to buy real estate and personal property through “dummy corporations.”
Nirav Modi New York House
All these methods were used by him to transfer the money received by these banks for business purposes and were spent on his personal use and luxury. He escaped India in January 2018 after which a warrant was issued by the CBI and Enforcement Directorate to arrest him.
The PNB scam is said to be one of the biggest fraud cases in India’s banking history to date. Till now the Government authorities of India have sealed and auctioned several thousand crores worth of properties and assets of Modi. Yet the government has not been able to get money recovered in full.
There is a need for improvement in our Indian Banking Sector and mainly a focus on providing the loans and credit facilities to the people who need them the most and who can repay without making defaults.
FAQ
How did Nirav Modi get loans?
Nirav took the loan with the help of a fake letter of understanding issued by PNB bank.
How much money did Nirav Modi borrow from the bank?
Nirav Modi and his uncle Mehul Choksi defrauded the bank of over Rs 14,000 crore.
In which year did Nirav Modi take the loan?
Nirav Modi took the first loan from PNB on March 10, 2011, and later managed to get 1,212 more such guarantees over the next 74 months.
On 26 April 2021, the Securities and Exchange Board of India (SEBI) has approved an appointment of the new Managing Director and CEO of the National Commodity and Derivatives Exchange Ltd (NCDEX). The new Managing Director and CEO of National Commodity and Derivatives Exchange Ltd is Arun Raste. Let’s look at who is Arun Raste, the new MD and CEO of NCDEX.
Arun Raste is currently working as the Executive Director of the National Dairy Development Board (NDDB) of India. He is also serving as the director on the board of Indian Immunological Limited which is based in Hyderabad and also the director on the board of Mother Dairy Fruit Vegetable Pvt Ltd. Which is based in Delhi.
He had earlier worked with companies such as Kotak Mahindra Bank, IDFC Bank, ACC Cement, NABARD and also a non-profit NGO IRFT.
He has done a bachelor’s degree in economics and also a master’s degree in economics. He also holds a post-graduation diploma in marketing management.
He has an interest in the areas such as BoP finance, Business Strategy, CSR, marketing, Corporate Planning and NGO management.
Seminars
He was invited by the United States State Department for ‘The International Visitor Leadership programme’(IVLP). He has also been part of various conferences and seminars which include the ones at UNCTAD, World Social Forum, IFAT Conference, WTO ministerial, Toyo University Tokyo, Kindai University Nara Japan, PSE Group in European Parliament, Murdoch University Perth Australia, and so on.
He has also published various research papers in National and International Journals.
Now he has been appointed as the Managing Director and CEO of National Commodity and Derivatives Exchange (NCDEX) for a period of 5 years.
What is NCDEX
National Commodity and Derivative Exchange is a commodity exchange platform in India. It is an online commodity exchange platform that provides the market participants a platform to trade in commodities and derivatives.
NCDEX was founded in the year 2003 and has its headquarters located in Mumbai, India. NCDEX is a public limited company that is fully owned by the Government of India. NCDEX has offices in other places which include Delhi, Hyderabad, Jaipur, Kolkata, Indore and Ahmedabad.
What is NCDEX
NCDEX is an leading agricultural commodity exchange in India. It offers value chain services for the entire post-harvest agricultural commodities.
Some of the key investors of NCDEX include National Stock Exchange of India Ltd, National Bank for Agriculture and Rural Development, Life Insurance Corporation of India, Oman India Joint Investment Fund, Investcorp Private Equity Fund, Build India Capital Advisors LLP, Indian Farmers Fertilizer, Cooperative Ltd, Punjab National Bank and Canara Bank.
NCDEX is predominantly an exchange with leadership in the agri commodity segments, while MCX has leadership in the area of gold, metals and oil.
Where is Ncdex located?
NCDEX headquarters are located in Mumbai and offers facilities to its members from the centres located throughout India.
What is full form Ncdex?
National Commodity & Derivatives Exchange Limited is full form of NCDEX.
Conclusion
Earlier in this month Vijay Kumar who was the former Managing Director and the CEO of NCDEX had left the position from the exchange after the completion of his extended term. Later, SEBI had appointed Arun Raste as the new CEO and MD of NCDEX.
When a student crosses the border of his domestic state into a foreign metropolitan city, he is nervous, curious, and anxious about how the new location and surroundings are gonna treat him. A young person often finds various ways to learn and grow from, many of them are harsh real-life situations. But his rented accommodation shouldn’t be one of them as well. Peaceful and friendly living space is what we all want and look for. But sadly, it isn’t always the case. Rude landlords, unaffordable PGs, restrictions, an inspection of locality, distance and so many more factors together give us a picture to make decisions upon. Here, Grexter comes to your solution.
In the last decade, the definition of renting has significantly changed. Grexter Living was established by Pratul Gupta & Nikhil Dosi, with the simple idea of changing the way youngsters live in India. They aim to eliminate the key problems that plague the rental accommodation sphere by providing state-of-the-art, fully-managed, and affordable co-living spaces. Committed to revolutionizing the renting space, Grexter offers end-to-end housing solutions to students and working professionals in Bangalore.
Get an Insight on Grexter Living Company Profile, Competitors, Business Model, Funding, Founders, Growth etc.,
Grexter Living offers functional and built-to-suit urban studio rooms that provide all the necessary amenities and, at the same time, are aesthetically appealing. Catering primarily to salaried employees, fresh graduates, and techies in the age group of 18-30 years, the spaces they provide consist of a large common kitchen with another huge designated area that has lounges, gaming consoles, and home theaters.
Grexter
All you need to do is go to Company’s website and select the co-living space closest to your workplace or college. Once you have selected the space you can schedule a visit on a particular date and time. During this visit, someone from their team will show you the room as well as the common spaces on their property. If you like it then you can book the place. Once the booking is done, you just need to show up on the date of your move-in along with your luggage. Rest is taken care of by the team.
Founders of Grexter
Pratul Gupta and Nikhil Dosi are the co-founder of Grexter Living.
Pratul and Nikhil befriended each other at a cultural event, and straightaway realized that they shared an inclination towards entrepreneurship.
Pratul facilitates the growth of the business by shouldering the responsibility of business development and managing the entire product and strategy. A B.Tech graduate in Chemical Engineering from the esteemed IIT Madras, Pratul worked for nearly 4 years in investment banking with stints at Credit Suisse and Deutsche Bank after graduating in 2011. He then joined a venture capital fund called Acumen for a brief period.
Equipped with the insights he gained throughout his professional sphere, he aims to make it the biggest provider of co-living spaces for youngsters across the top 8 tier I cities of India.
Nikhil graduated in chemical engineering from IIT Madras in 2013 and worked for Reliance before deciding that he had to reconnect with his friend and embark upon building a business.
How was Grexter Started
In the year 2015, Pratul was working with a venture capital fund called Acumen which is based out of Mumbai. During his stint there, he worked on an investment deal for a PG accommodation provider. While Working on that deal, Pratul studied the rental housing market of India in detail. This coupled with his own struggles of finding good accommodation in Mumbai made him realize that he is supposed to work on this and solve this problem, not only for his own self but for millions of Indian youngsters like him.
Grexter decided to operate from Bangalore as the city has a very cosmopolitan nature. With rapid urbanization and an increase in population, it is amongst the fastest-growing cities in India. Every year, lakhs of young adults migrate to Bangalore for better career prospects. Unfortunately, a majority of them are forced to stay in cramped PGs without having access to basic facilities. Grexter wanted to address these issues by providing them with affordable yet quality co-living spaces at prime locations. For company, marketing was never a priority, they focused on making a product that speaks for itself.
Co-Living – Market and Industry Details
India’s co-living segment has huge growth potential. According to the latest projections by RedSeer Consulting, the domestic co-living market will be worth more than 2 billion USD by 2022. The number indicates the increasing demand for tech-enabled co-living facilities in the country. According to a survey, over 50 percent people in the age group of 18-35 years are willing to rent co-living spaces and pay up to Rs 15,000 a month in top Indian cities including Delhi NCR, Mumbai, and Bengaluru. Although the concept of co-living is more popular in the metro cities, it has started to catch up with the residents of tier II and tier III cities as well.
Grexter – Name and Logo
The term Grex is derived from the Latin noun ‘grex’ meaning ‘flock’. The co-living company builds inclusive surroundings for youngsters who come together to live with them, their community symbolizes the flock that sticks together no matter what. Grexter is a representative of the flock it belongs to. They added the word ‘living’ to Grexter to explain their offering better – living spaces for the young.
grexer living
Company’s logo has 3 circles – the smallest one on the outside represents the tenant, the bigger inclusive one represents the surrounding, which the tenant is just about to enter, while the center circle represents his private zone which is his own personal space amidst the larger community. The whole combination also looks like a “G” representing Grexter.
Grexter – Business Model and Revenue Model
Grexter works on operator model in which they sign buildings with minimum 100 beds capacity by entering into a long-term lease with the owner of the property. They promise a minimum rental plus a revenue share with the owner. After adding operating cost and margins they rent these beds to the end-user at a competitive market price.
Grexter – User Acquisition and Growth
Grexter not just provide a place to live but each one of their building is designed to connect and inspire people. Their living spaces foster human connection and enable people to lead more fulfilling lives. From common areas and designated game zones consisting of the foosball table, table tennis table to weekly events such as Karaoke night, poetry & storytelling night, Yoga sessions and much more, the co-living startup try their best to keep the tenants entertained by giving them a chance to socialize and forge connections. The cultural activities and events are ever-changing and bespoke to each location. That’s what differentiates Grexter Living from other co-living spaces and has worked from the very start to attract people.
It currently operates in 21+ Locations across Bangalore has 2200+ beds and 3000 beds in the upcoming 6 months. Their Current Annual Revenue rate is of INR 19.2 crores and an occupancy of 95% at mature locations.
Grexter Living Acquihired i2Stay. It will expand the scale of operations of the combined entity and also enable it to move into new cities. i2Stay provides affordable accommodation targeted at working professionals. As part of this deal, Rajasekhar Gowrineni, CEO of i2stay, joined the team as the Managing Partner for South India.
“We are extremely happy to welcome Rajasekhar on-board. Rajasekhar has been a pioneer in space-saving concepts, and through this partnership, we will be able to leverage his expertise and years of experience. We are already working on some really innovative co-living design ideas and hope to bring them to life very soon” Said Pratul Gupta, Co-Founder, Grexter Living.
Grexter Living had raised a Pre-Series A investment worth $1.5 million (INR 10.6 Cr) from Venture Catalysts earlier this year.
This funding helped us to scale up our operations and strengthen the underlying technological framework.
Key Investors include – Apoorva Ranjan Sharma(Founder, Venture Catalysts First Investor in OYO), Anuj Munot (Director, Kalpataru Group), Abhishek Bhatewara(Director, Rohan Builders), Naveen Garg(Ex – B2B head, PNB Housing), Anuj Golecha(Samyakth Group) and Siddharth Kothari(Om Group)
Grexter – Startup Challenges
The most challenging part for this co-living startup was to find a good quality supply i.e. properties. To overcome this, the company has partnered with various real estate developers. They also have some of the top developers of the country as their investors. It has created a think tank within the company which is helping them acquire the best properties in the most prime areas of the country.
Grexter – Competitors
StayAbode, Stanza Living, Colive, NestAway, Zolo, Coho, OYO Life are some of it’s competitors in the industry. What makes Grexter Living different is the fact that it endeavors to create true co-living communities by charging all-inclusive rent for studio rooms that are new-age and transparent in resident policies.
There are quite a lot of competitors in the market for Co-living spaces but the aspect of affordability is one of the key USPs of Grexter Living. The rent for a double-sharing room starts at INR 9,000, where single room rents start from INR 16,000 (including utility charges and maintenance). They see co-living as a platform for people’s life for becoming the best self by being part of something bigger. For sharing space, skills, resources and dreams with other inspiring and creative people. For living a life on purpose.
Grexter – Future Plans
Grexter plans to increase their citywide footprint to 5,000 beds by the end of 2019. They are also looking to expand their operations into Pune and Hyderabad in 2020, and have 20,000 beds in their inventory.
Grexter – FAQs
Who are the Founders of Grexter Living?
Pratul Gupta and Nikhil Dosi founded Grexter Living in 2016.
How much is Grexter Living Funding?
Grexter Living raised a Pre-Series A investment worth $1.5 million (INR 10.6 Cr) from Venture Catalysts in 2019.
Who are the Key Investors in Grexter Living?
Apoorva Ranjan Sharma (Founder, Venture Catalysts First Investor in OYO), Anuj Munot (Director, Kalpataru Group), Abhishek Bhatewara (Director, Rohan Builders), Naveen Garg (Ex – B2B head, PNB Housing), Anuj Golecha (Samyakth Group) and Siddharth Kothari (Om Group).
Who are the Top competitors of Grexter Living?
StayAbode, Stanza Living, Colive, NestAway, Zolo, Coho, OYO Rooms are some of Grexter’s competitors in the industry.
