Indian Bank has announced a selective revision in its benchmark lending rates, with the Asset Liability Management Committee (ALCO) approving changes to the Treasury Bills Linked Lending Rates (TBLR) effective from April 3, 2026. The decision was communicated to stock exchanges under SEBI listing regulations on April 2, 2026.

TBLR Rate Revision Details

The bank has implemented a targeted rate cut in its shortest tenor category, reducing the TBLR for loans up to 3 months from 5.35% to 5.30%. This represents a reduction of 5 basis points for short-term lending products. The revised TBLR structure is as follows:

Other Benchmark Rates Remain Unchanged

The ALCO maintained stability across other key lending rate benchmarks. The Marginal Cost of funds based Lending Rate (MCLR) structure remains unchanged across all tenors:

Traditional Benchmark Rates

Indian Bank has kept its traditional benchmark rates steady, with the Base Rate continuing at 9.55% and the Benchmark Prime Lending Rate (BPLR) remaining at 13.80%. Additionally, the Policy Repo Rate stands at 5.25% while the Repo Linked Benchmark Lending Rates (RBLR) is maintained at 7.95%.

Implementation Timeline

The revised TBLR rates became effective from April 3, 2026, providing borrowers with lower interest costs on short-term Treasury Bills linked lending products. The selective nature of the revision indicates the bank's strategic approach to rate management, focusing on specific tenor segments while maintaining stability in other categories.

Indian Bank has successfully completed the allotment of Long Term Infrastructure Bonds worth Rs.5000 crore through private placement, as announced in a regulatory filing dated March 24, 2026. The bond issuance was conducted under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Bond Issue Details

The infrastructure bonds carry several key features that make them attractive to institutional investors:

Issue Timeline and Platform

The bond issue demonstrated efficient execution with a streamlined timeline. The issue opened and closed on March 23, 2026, on the BSE EBP (Electronic Book Platform), indicating strong investor interest and quick subscription.

Bond Structure and Features

The bonds are structured as senior, unsecured, redeemable instruments with a long-term maturity profile. They are fully paid-up and non-convertible in nature, classified under Series III of the bank's debenture program. The bonds carry a credit rating and are listed for trading, providing liquidity options for investors.

The successful allotment to four institutional investors indicates concentrated institutional participation in the issue. The private placement route allowed the bank to efficiently raise the targeted amount while maintaining control over the investor base.

Regulatory Compliance

The bond issuance has been conducted in full compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has fulfilled all necessary disclosure requirements and regulatory formalities associated with the infrastructure bond issuance.

The communication was signed by Dina Nath Kumar, AGM & Company Secretary, confirming the completion of all allotment procedures and regulatory notifications to both NSE and BSE exchanges.