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.

Indian Bank , one of India's leading public sector banks, has reaffirmed its credit growth guidance while announcing an improved target for gross non-performing assets (NPAs). The bank's management shared these updates during a recent investor communication.

Credit Growth and Return on Equity

Indian Bank has maintained its credit growth guidance at 10-12% for the current fiscal year. However, the bank's management expressed optimism, stating that actual results are expected to surpass this range. This suggests a positive outlook on the bank's lending activities and overall business growth.

In addition to the credit growth guidance, Indian Bank has set a return on equity (RoE) target of 18-20%. This indicates the bank's focus on improving profitability and delivering value to shareholders.

Improved Asset Quality Target

In a significant development, Indian Bank has revised its gross NPA target, showcasing its commitment to enhancing asset quality. The bank has lowered its gross NPA target from below 3% to below 2%, reflecting a more aggressive approach to managing non-performing assets.

This improvement in the NPA target demonstrates the bank's confidence in its ability to reduce bad loans and strengthen its balance sheet.

Recovery Goals

Indian Bank's management has maintained its recovery goal at ₹5,500-6,500 crore. The bank has already made substantial progress towards this target, having recovered ₹3,700 crore thus far.

Q2 Financial Highlights

To provide context to these forward-looking statements, it's worth examining Indian Bank's recent financial performance. According to the bank's Q2 results:

The bank's financial results demonstrate year-over-year improvements across key metrics, aligning with its guidance and targets.

Conclusion

Indian Bank's maintained credit growth guidance, coupled with an improved gross NPA target, signals the bank's confidence in its growth trajectory and asset quality management. With a focus on profitability and robust recovery efforts, the bank appears well-positioned to navigate the evolving financial landscape.

As the fiscal year progresses, stakeholders will be keen to observe whether Indian Bank can exceed its credit growth guidance and achieve its asset quality and profitability targets.