IOBNSEIndian Overseas Bank· BanksLowNeutral
Announced Tue, 13 Jan · 16:19 IST

Indian Overseas Bank has informed the Exchange about Changes in MCLR w.e.f. 15.01.2026

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Indian Overseas Bank has revised its Marginal Cost of Funds-based Lending Rate (MCLR) effective 15 January 2026. The Overnight MCLR has been reduced by 5 basis points, from 8.00% to 7.95%. All other tenors — one-month (8.30%), three-month (8.40%), six-month (8.65%), one-year (8.80%), two-year (8.80%), and three-year (8.85%) — remain unchanged. The revision was approved by the bank's Asset-Liability Committee (ALCO) on 13 January 2026 after reviewing MCLR workings as of 10 January 2026.

Likely market impact

A marginal cut in the Overnight MCLR may slightly lower borrowing costs for very short-tenure loans, but with only the overnight rate trimmed, the impact on overall loan pricing and net interest margins is minimal. Existing borrowers on longer-tenor MCLR-linked loans are unaffected.