Indian Bank Eliminates Minimum Balance Charges, Reduces MCLR
Indian Bank announces two significant changes: waiver of minimum balance charges for all savings accounts effective July 7, 2025, and a 5 basis point reduction in one-year MCLR to 9.00%, effective July 3, 2025. These moves aim to enhance customer satisfaction and adjust lending rates in response to market conditions.

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Indian Bank , a prominent public sector bank in India, has announced two significant changes that are set to benefit its customers. The bank is making moves to enhance customer satisfaction and adjust its lending rates in response to market conditions.
Waiver of Minimum Balance Charges
In a customer-friendly move, Indian Bank has decided to waive charges for non-maintenance of minimum balance across all savings accounts. This change will come into effect from July 7, 2025. This decision is likely to bring relief to many account holders, especially those who struggle to maintain the required minimum balance in their savings accounts.
The elimination of these charges could potentially:
- Reduce the financial burden on customers
- Attract new account holders
- Improve overall customer satisfaction and loyalty
Reduction in MCLR
Alongside the minimum balance charge waiver, Indian Bank has also announced a reduction in its one-year Marginal Cost of Funds based Lending Rate (MCLR). The bank has cut its MCLR by 5 basis points, bringing it down to 9.00%. This change will be effective from July 3, 2025.
The MCLR is a benchmark interest rate, which is the minimum rate at which banks can lend. A reduction in MCLR typically leads to:
- Lower interest rates on loans linked to MCLR
- Potential benefits for existing and new borrowers
- Possible stimulation of credit growth
Implications for Customers and the Bank
These dual announcements from Indian Bank signify a strategic move to enhance its competitive position in the banking sector. By waiving minimum balance charges, the bank is likely aiming to expand its customer base and improve retention rates. The MCLR reduction, on the other hand, could make the bank's loan offerings more attractive in the market.
For customers, these changes translate to potential savings and increased accessibility to banking services. Borrowers with MCLR-linked loans may see a reduction in their equated monthly installments (EMIs) or loan tenures, depending on the terms of their loans.
As these changes are set to take effect in the coming months, customers of Indian Bank can look forward to these benefits, while the banking sector watches to see if these moves will influence similar decisions by other banks in the competitive Indian banking landscape.
Historical Stock Returns for Indian Bank
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
+0.15% | +4.83% | +0.68% | +24.32% | +20.99% | +888.83% |