Indian Bank has announced its decision to exercise call options on three series of Additional Tier 1 (AT1) Perpetual Bonds totaling Rs 2,000 crore. This move, subject to the Reserve Bank of India's (RBI) approval, demonstrates the bank's proactive approach to managing its capital structure.

Bond Details

The bank plans to exercise call options on the following AT1 Perpetual Bonds:

All three bond series carry an 8.44% coupon rate and were issued in December 2020.

Key Points

• Coupon Rate: 8.44% for all three series
• Issue Date: December 2020
• Total Amount: Rs 2,000.00 crore
• Approval Required: RBI's prior approval is necessary for exercising the call options

Record Dates and Payment Schedule

Indian Bank has set record dates for each series:

*Note: For Series III, the payment will be made on December 12, 2025, as December 14, 2025, is a Sunday, and December 13, 2025, is a second Saturday (holiday).

Implications

This decision by Indian Bank to exercise call options on its AT1 Perpetual Bonds may indicate the bank's confidence in its capital position and its strategy to optimize its capital structure. The move could potentially lead to a reduction in the bank's interest expenses, depending on prevailing market conditions and any new capital raising plans.

Recent Updates

In a separate announcement, Indian Bank has also informed about the migration of its email and website domains to comply with the RBI's cybersecurity directive. The bank's new email domain is @indianbank.bank.in, and the new website domain is www.indianbank.bank.in . This change is part of a broader initiative by the RBI to enhance cybersecurity in the banking sector.

Investors and stakeholders should take note of these changes in the bank's digital presence to ensure smooth communication and access to information.

As always, investors are advised to consider their investment objectives and risk tolerance when evaluating any changes in a bank's capital structure or operations.

Indian Bank , a major public sector bank in India, has announced a downward revision in its Treasury Bills Linked Lending Rates (TBLR) across various tenors. The bank's Asset Liability Management Committee made this decision, with the new rates set to take effect from November 3, 2025.

Key Rate Changes

This adjustment represents a uniform decrease of 5 basis points across all tenors, potentially signaling the bank's response to changing market conditions or monetary policy shifts.

Unchanged Rates

While the TBLR has been revised, several other key rates remain unchanged:

The MCLR, which serves as a benchmark for most consumer loans, continues to range from 7.95% for overnight to 8.85% for a 3-year tenor.

Implications for Borrowers and the Market

This reduction in TBLR could potentially lead to lower borrowing costs for customers whose loans are linked to these rates. However, the impact may be limited as the reduction is relatively small at 5 basis points.

It's important to note that while the TBLR has been adjusted, other key rates such as the MCLR, Base Rate, and Repo Linked Benchmark Lending Rates remain unchanged. This suggests a targeted approach by Indian Bank in adjusting its lending rates, possibly in response to specific market factors affecting Treasury Bill yields.

Borrowers and investors should keep an eye on how this change might influence the broader lending landscape and whether other banks might follow suit with similar rate adjustments in the near future.