Indian Bank has informed the Exchange about Updates regarding Revision in Benchmark Rates and complete waiver of minimum balance charges levied in SB Account
INDIANB · price
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Indian Bank has announced a downward revision in its benchmark lending rates, effective 3 July 2025. The MCLR has been cut by up to 40 basis points (e.g., up to 3-month tenor reduced from 5.80% to 5.40%), while the Base Rate and BPLR have been trimmed by 10 basis points each to 9.70% and 13.95% respectively. The Repo Linked Benchmark Rate (RBLR) and Policy Repo Rate remain unchanged. Separately, the bank has also approved a complete waiver of minimum balance charges in Savings Bank Accounts for non-maintenance of stipulated minimum balance, effective 7 July 2025.
Lower lending rates may squeeze the bank's net interest margins in the short term, potentially impacting profitability, while the waiver of minimum balance charges could help attract and retain more savings account customers. Overall, this is a customer-friendly move that may modestly pressure margins but could boost deposit growth.