Bank of Maharashtra , a prominent public sector bank, has announced a reduction in its Marginal Cost of Funds Based Lending Rate (MCLR) across multiple tenors, effective July 31, 2025. This move is likely to impact borrowers with MCLR-linked loans.

Key Rate Changes

The bank has made the following adjustments to its MCLR:

Impact on Different Tenors

• One-Year MCLR: The benchmark one-year MCLR, which serves as the basis for most consumer loans, has been reduced by 5 basis points from 9.05% to 9.00%.
• Six-Month Tenor: Saw a significant cut of 20 basis points, dropping from 8.90% to 8.70%.
• Three-Month Tenor: Decreased by 10 basis points, from 8.65% to 8.55%.
• Short-Term Rates: The overnight and one-month MCLR rates remain unchanged at 8.20% and 8.40% respectively.

Regulatory Compliance

As part of its regulatory obligations, Bank of Maharashtra has communicated these changes to the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). This disclosure is in line with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The revised rates, as confirmed by Mr. Vishal Sethia, Company Secretary & Compliance Officer of Bank of Maharashtra, will come into effect from July 31, 2025.

This adjustment in MCLR rates by Bank of Maharashtra could potentially lead to lower interest rates for borrowers, particularly those with loans linked to the six-month and one-year MCLR. However, the actual impact on individual loan rates may vary based on specific loan terms and conditions.

ICRA Limited, a prominent credit rating agency, has reaffirmed its ICRA AA+ ratings with a stable outlook on Bank of Maharashtra 's securities worth Rs 11,500 crore. This rating action, announced on July 24, 2025, covers a range of debt instruments issued by the bank, including Basel III Tier II Bonds and Long Term Infrastructure Bonds.

Rating Details

The reaffirmation applies to the following securities:

Rating Withdrawal

It's worth noting that ICRA has withdrawn its rating for one Basel III Tier II Bond with an 8.70% coupon rate. The reason for this withdrawal was not specified in the announcement.

Implications of the Rating

The reaffirmation of the ICRA AA+ rating with a stable outlook indicates ICRA's continued confidence in Bank of Maharashtra's creditworthiness for these debt instruments. This rating suggests that the instruments carry very low credit risk and are considered to have a high degree of safety regarding timely servicing of financial obligations.

Regulatory Compliance

Bank of Maharashtra disclosed this information in compliance with Regulation 55 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank's Company Secretary, Vishal Sethia, signed the official communication to the stock exchanges.

This rating reaffirmation may positively impact investor confidence in Bank of Maharashtra's debt instruments and overall financial stability. It reflects the rating agency's assessment of the bank's strong capacity to meet its financial commitments on these securities.