UCO Bank Adjusts Benchmark Interest Rates: MCLR Decreases, TBLR Increases
UCO Bank has announced changes to its benchmark interest rates, effective October 10, 2025. MCLR rates have been reduced by 0.05% for overnight, one-month, and one-year tenors, while remaining unchanged for three and six-month tenors. TBLR rates have increased across all tenors, with the highest increase of 0.10% for the 6-month tenor. G-Sec linked rates have marginally decreased. Repo Linked Rates, Base Rate, and BPLR remain unchanged. These adjustments may impact borrowers differently depending on their loan type.
*this image is generated using AI for illustrative purposes only.
UCO Bank , a prominent public sector bank in India, has announced revisions to its benchmark interest rates, effective from October 10, 2025. The bank's Asset Liability Management Committee (ALCO) has implemented a mix of changes across various rate categories, potentially impacting borrowers and depositors alike.
MCLR Rates Adjustment
The Marginal Cost of Funds Based Lending Rate (MCLR), a key determinant for loan interest rates, has seen reductions across most tenors:
| Tenor | Previous Rate | New Rate | Change |
|---|---|---|---|
| Overnight | 8.05% | 8.00% | -0.05% |
| One month | 8.30% | 8.25% | -0.05% |
| Three month | 8.45% | 8.45% | No change |
| Six month | 8.70% | 8.70% | No change |
| One year | 8.90% | 8.85% | -0.05% |
The reduction in MCLR rates, particularly for overnight, one-month, and one-year tenors, could translate to lower interest rates for borrowers with MCLR-linked loans.
TBLR Rates Increase
In contrast to the MCLR reduction, the Treasury Bill Linked Rate (TBLR) has seen an increase across all tenors:
| Tenor | Previous Rate | New Rate | Change |
|---|---|---|---|
| 3-month | 5.45% | 5.50% | +0.05% |
| 6-month | 5.50% | 5.60% | +0.10% |
| 12-month | 5.55% | 5.60% | +0.05% |
This increase in TBLR rates may affect the interest rates for loans linked to this benchmark.
G-Sec Linked Rates
The Government Securities (G-Sec) linked rates have experienced marginal decreases:
| Rate Type | Previous Rate | New Rate | Change |
|---|---|---|---|
| UCO G-Sec Rate (1 year) | 5.67% | 5.64% | -0.03% |
| 10-year G-Sec Rate YTM | 6.78% | 6.72% | -0.06% |
Unchanged Rates
UCO Bank has maintained the following rates at their existing levels:
- 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 adjustments in benchmark rates reflect UCO Bank's response to the current economic environment and market conditions. Borrowers with loans linked to MCLR may benefit from potentially lower interest rates, while those with TBLR-linked loans might see a slight increase in their interest obligations.
It's important for UCO Bank customers to review their loan agreements and understand how these changes might affect their borrowing costs. For potential borrowers, these rate adjustments could influence their decision-making process when choosing between different loan products offered by the bank.
Historical Stock Returns for UCO Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.41% | +3.35% | +9.47% | +9.88% | -30.11% | +167.23% |
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