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 received approval from the Reserve Bank of India (RBI) to exercise call options on three series of Additional Tier 1 (AT1) bonds totaling Rs 2,000 crore. This move signifies a significant financial maneuver for the bank, potentially impacting its capital structure and investor relations.

Details of the AT1 Bonds

The approval covers three series of AT1 bonds, with their respective values and call option dates as follows:

Significance of RBI Approval

The RBI's approval for exercising these call options is a crucial step for Indian Bank. It allows the bank to potentially refinance or restructure its Tier 1 capital, which is essential for maintaining regulatory capital requirements and overall financial stability.

Implications for Investors

For bondholders, this development signals that Indian Bank may choose to redeem these AT1 bonds on their respective call option dates. Investors should be aware that if the bank exercises these options, they may need to reassess their investment portfolios accordingly.

Regulatory Compliance

As per the LODR (Listing Obligations and Disclosure Requirements) regulations, Indian Bank has duly informed the stock exchanges about this development. This transparency ensures that all market participants have access to this market-sensitive information simultaneously.

Future Outlook

While the approval to exercise the call options has been granted, it's important to note that the actual exercise of these options will occur on the specified dates in December 2025. Market conditions and the bank's capital position at that time may influence the final decision on whether to proceed with the call option exercise.

Indian Bank's proactive approach in managing its capital structure through these potential AT1 bond redemptions demonstrates its commitment to optimizing its financial position. As the call option dates approach, market observers will be keen to see how this move fits into the bank's broader capital management strategy.