Indian Bank , a prominent public sector bank, has announced significant changes to its lending rates, effective December 3, 2025. The bank's Asset Liability Management Committee (ALCO) has revised both the Marginal Cost of funds based Lending Rate (MCLR) and Treasury Bills Linked Lending Rates (TBLR) across various tenors.

Key Changes in Lending Rates

The revisions in MCLR and TBLR rates are as follows:

It's worth noting that the Base Rate, Benchmark Prime Lending Rate (BPLR), Policy Repo Rate, and Repo Linked Benchmark Lending Rates (RBLR) remain unchanged.

Impact on Borrowers

These rate adjustments are likely to affect both new and existing borrowers with floating rate loans linked to MCLR or TBLR. The changes may influence EMIs for various loan products offered by Indian Bank.

Bank's Financial Position

While the bank adjusts its lending rates, it's important to consider its overall financial health. As per the latest available balance sheet data:

The bank has shown growth across key financial metrics, indicating a strong financial position as it implements these rate changes.

Conclusion

Indian Bank's decision to revise its MCLR and TBLR rates reflects its response to the current economic environment and monetary policies. Borrowers are advised to review their loan agreements and consult with the bank to understand how these changes may affect their financial obligations.

Indian Bank , a prominent public sector bank, has successfully completed the redemption of its Additional Tier 1 (AT1) Bond Series III worth Rs 560 crore following the exercise of call options. The bank had previously received approval from the Reserve Bank of India (RBI) to exercise call options on three series of AT1 bonds totaling Rs 2,000 crore.

Payment Confirmation Details

On December 12, 2025, Indian Bank confirmed the completion of principal and interest payments for its Basel III Compliant AT1 Bond Series III under SEBI (LODR) Regulations, 2015. The payment details are as follows:

Timing Adjustment for Business Days

The original due date for the call option exercise was December 14, 2025. However, since this fell on a Sunday (holiday) and December 13, 2025 was a non-business day in Mumbai's money market, the payment was made on the immediately preceding business day, December 12, 2025, as per the terms of the offer document.

Complete AT1 Bond Portfolio Overview

The bank had received RBI approval for call options on three series of AT1 bonds with the following structure:

Regulatory Compliance and Transparency

As mandated under Regulation 57 of SEBI (LODR) Regulations, 2015, Indian Bank has formally disclosed the completion of this redemption payment to both NSE and BSE. This regulatory filing ensures complete transparency for all market participants and bondholders regarding the bank's debt securities management.

Capital Structure Impact

The successful redemption of AT1 Bond Series III represents a significant step in Indian Bank's capital management strategy. This move allows the bank to optimize its Tier 1 capital structure while maintaining regulatory compliance and demonstrates proactive financial management in the current market environment.