UCO Bank , a prominent public sector lender, has announced revisions to its benchmark interest rates, effective September 10, 2025. The bank's Asset Liability Management Committee (ALCO) has implemented changes across various rate categories, with notable reductions in the Marginal Cost of Funds Based Lending Rate (MCLR).

MCLR Reductions

UCO Bank has lowered its MCLR across all tenors by 5 to 10 basis points:

The reduction in MCLR is likely to benefit borrowers with MCLR-linked loans, as it may lead to lower interest rates on various lending products.

Treasury Bill Linked Rate (TBLR) Changes

While the MCLR saw a decrease, the bank has made adjustments to its Treasury Bill Linked Rates:

• 3-month TBLR: Increased from 5.35% to 5.45%
• 6-month TBLR: Remains unchanged at 5.50%
• 12-month TBLR: Remains unchanged at 5.55%

G-Sec Linked Rates

UCO Bank has also updated its G-Sec linked rates:

• UCO G-Sec Rate (1 year): Increased from 5.64% to 5.67%
• 10-year G-Sec Rate YTM (Annualized Par yield): Rose from 6.51% to 6.78%

Unchanged Rates

Several benchmark rates remain unaltered:

• Repo Linked Rate – UCO Float: 8.30%
• Repo Linked Rate – UCO Prime: 5.50%
• Base Rate: 9.60%
• Benchmark Prime Lending Rate (BPLR): 14.25%

These rate adjustments reflect UCO Bank's response to current market conditions and monetary policy changes. Borrowers and depositors are advised to review how these changes might affect their financial products linked to these benchmark rates.

UCO Bank's decision to reduce MCLR rates could potentially stimulate borrowing, while the increases in certain other benchmark rates may impact specific financial instruments differently. As always, customers are encouraged to consult with bank representatives for personalized advice on how these changes may affect their individual financial situations.

UCO Bank , a prominent Indian public sector bank, has announced significant changes to its benchmark interest rates, as decided by the bank's Asset Liability Management Committee (ALCO). The revisions, set to take effect from August 10, 2025, encompass various key rates including the Marginal Cost of Funds Based Lending Rate (MCLR) and other benchmark rates.

MCLR Rate Revisions

The MCLR, which serves as the internal benchmark for setting lending rates, has been updated across all tenors:

Other Benchmark Rate Changes

In addition to the MCLR revisions, UCO Bank has also adjusted several other benchmark rates:

It's worth noting that the TBLR (6 month) remains unchanged at 5.50%.

Unchanged Rates

The bank has maintained the following rates without any alterations:

• Repo Linked Rate – UCO Float: 8.30%
• Repo Linked Rate – UCO Prime: 5.50%
• Base Rate: 9.60%
• Benchmark Prime Lending Rate (BPLR): 14.25%

These rate adjustments reflect UCO Bank's response to the current financial landscape and are likely to impact both borrowers and depositors. Existing and potential customers of UCO Bank are advised to take note of these changes, as they may affect loan interest rates and other financial products linked to these benchmark rates.

The bank has officially communicated these changes to the National Stock Exchange of India Ltd. and BSE Limited, ensuring transparency in its operations and compliance with regulatory requirements.