Indian Overseas Bank has informed the Exchange about General Updates- Changes in MCLR and Base Rate w.e.f 15.08.2025
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Indian Overseas Bank has reduced its Marginal Cost of Funds based Lending Rate (MCLR) by 10 basis points across all tenors, effective from 15.08.2025. The overnight MCLR falls to 8.05% from 8.15%, the one-year MCLR drops to 8.90% from 9.00%, and the three-year MCLR comes down to 8.95% from 9.05%. The bank has also cut its Base Rate by 20 basis points to 9.80%. The decision was taken by the bank's Assets and Liabilities Management Committee (ALCO) on 11.08.2025.
Lower lending rates mean cheaper loans for borrowers linked to MCLR/Base Rate, but may compress the bank's net interest margins. For shareholders, this is a routine rate action likely following broader rate-cut trends, with a mildly negative read on margins unless it drives strong loan growth.