Tamilnad Mercantile Bank Adjusts MCLR Rates: Mixed Changes Across Tenors
Tamilnad Mercantile Bank (TMB) has announced changes to its Marginal Cost of Funds Based Lending Rate (MCLR), effective November 7, 2025. The three-month MCLR decreased by 10 basis points to 8.20%, while the six-month MCLR increased by 5 basis points to 8.75%. Overnight, one-month, and one-year rates remain unchanged at 7.50%, 7.50%, and 9.25% respectively. These adjustments may impact borrowing costs for customers with loans linked to these benchmarks.
*this image is generated using AI for illustrative purposes only.
Tamilnad Mercantile Bank (TMB) has announced revisions to its Marginal Cost of Funds Based Lending Rate (MCLR), effective November 7, 2025. The bank has made adjustments across various tenor categories, potentially impacting borrowing costs for its customers.
Key Changes in MCLR Rates
| Tenor | Existing Rate | Revised Rate | Change |
|---|---|---|---|
| Overnight | 7.50% | 7.50% | No change |
| One Month | 7.50% | 7.50% | No change |
| Three Month | 8.30% | 8.20% | -0.10% |
| Six Month | 8.70% | 8.75% | +0.05% |
| One Year | 9.25% | 9.25% | No change |
Notable Adjustments
The most significant changes in TMB's MCLR rates are:
- Three-Month MCLR: Decreased from 8.30% to 8.20%, a reduction of 10 basis points.
- Six-Month MCLR: Increased from 8.70% to 8.75%, an uptick of 5 basis points.
The overnight, one-month, and one-year MCLR rates remain unchanged at 7.50%, 7.50%, and 9.25%, respectively.
Implications for Borrowers
These MCLR adjustments may affect the interest rates on various loans linked to these benchmarks. Borrowers with loans tied to the three-month MCLR might see a slight decrease in their interest rates, while those linked to the six-month MCLR could experience a marginal increase.
It's important to note that the impact on individual loans will depend on their reset dates and specific terms. Existing and potential borrowers are advised to consult with Tamilnad Mercantile Bank for detailed information on how these changes might affect their loan agreements.
The bank's decision to revise its MCLR rates reflects its ongoing assessment of funding costs and market conditions. Such adjustments are part of the regular review process undertaken by banks to align their lending rates with current economic factors and regulatory guidelines.
Tamilnad Mercantile Bank's MCLR revision comes as part of its regulatory compliance, as communicated to the National Stock Exchange of India Ltd and Bombay Stock Exchange Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Historical Stock Returns for Tamilnad Mercantile Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.01% | +2.49% | +15.42% | +11.87% | +12.62% | -2.83% |
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