Revision in Benchmark Rates
Awaiting price reaction for this filing.
Indian Bank has revised its Marginal Cost of Funds based Lending Rate (MCLR) downward across all tenors, effective June 3, 2025. The MCLR for tenors up to 3 months has been cut from 6.05% to 5.80%, while rates for 3-month to 3-year tenors have been reduced from 6.10% to 5.80%. Treasury Bills Linked Lending Rates (TBLR) have also been lowered by 5 basis points across overnight to 1-year tenors. The Base Rate (9.80%), Benchmark Prime Lending Rate (14.05%), Policy Repo Rate (6.00%), and Repo Linked Benchmark Lending Rates (8.70%) remain unchanged. The revision was approved by the Bank's Asset Liability Management Committee (ALCO).
Lower lending rates may marginally pressure the bank's net interest margins, but this is a routine periodic revision reflecting the bank's cost of funds. New borrowers will get cheaper loans, while existing borrowers on MCLR-linked loans may benefit from lower EMIs.