Indian Bank has announced its decision to exercise the call option on its outstanding Tier 2 Bonds Series V, marking a significant corporate action for the public sector bank. The exercise involves bonds aggregating to ₹2000 crores and is subject to receiving requisite prior approval from the Reserve Bank of India.

Bond Details and Timeline

The bank has provided comprehensive details regarding the call option exercise through its official communication to stock exchanges. The following table outlines the key parameters of the bond series:

Regulatory Compliance and Approval

The call option exercise is contingent upon receiving the necessary regulatory approvals from the Reserve Bank of India. This requirement aligns with standard banking regulations governing Tier 2 capital instruments and ensures compliance with Basel III norms. The bank has clearly stated that the exercise is subject to RBI's prior approval, highlighting the regulatory oversight involved in such corporate actions.

Record Date Significance

Indian Bank has set December 29, 2025, as the record date for determining eligible bondholders for the call option exercise. This date is crucial for investors as it establishes the cut-off for identifying bondholders who will be affected by the call option exercise scheduled for January 13, 2026.

Basel III Compliance Framework

The Tier 2 Bonds Series V are Basel III compliant instruments, representing part of the bank's regulatory capital structure. These bonds were issued as part of the bank's capital adequacy requirements and form a component of the supplementary capital under Basel III guidelines. The 6.18% coupon rate reflects the interest rate environment at the time of issuance in January 2021.

Indian Bank has communicated this development to both the National Stock Exchange of India Limited and BSE Limited, ensuring proper disclosure to all stakeholders and market participants. This announcement demonstrates the bank's proactive approach to managing its capital structure and regulatory compliance obligations.

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.