Indian Bank Reduces MCLR and TBLR Rates Across All Tenors Effective January 3, 2026
Indian Bank has announced a reduction in benchmark lending rates effective January 3, 2026, following an ALCO review. MCLR rates have been cut by 5 basis points across all tenors, ranging from 7.90% to 8.75%. TBLR rates have been reduced by 5-10 basis points, while Base Rate and BPLR have each been lowered by 5 basis points to 9.55% and 13.80% respectively. Policy Repo Rate and RBLR remain unchanged at 5.25% and 7.95%.
*this image is generated using AI for illustrative purposes only.
Indian Bank has announced a comprehensive revision in its benchmark lending rates, with the new rates set to take effect from January 3, 2026. The decision follows a detailed review conducted by the bank's Asset Liability Management Committee (ALCO) in compliance with SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.
MCLR Rates Reduced Across All Tenors
The bank has implemented a uniform reduction of 5 basis points across all Marginal Cost of funds based Lending Rate (MCLR) tenors. The revised MCLR structure demonstrates the bank's commitment to providing competitive lending rates to its customers.
| Tenor | Existing Rate (%) | Revised Rate (%) | Reduction (bps) |
|---|---|---|---|
| Overnight | 7.95% | 7.90% | 5 |
| 1 month | 8.25% | 8.20% | 5 |
| 3 months | 8.45% | 8.40% | 5 |
| 6 months | 8.70% | 8.65% | 5 |
| 1 Year | 8.80% | 8.75% | 5 |
Treasury Bills Linked Rates See Varied Reductions
Treasury Bills Linked Lending Rates (TBLR) have been revised with reductions ranging from 5 to 10 basis points across different tenor categories. The most significant reduction of 10 basis points has been applied to the shortest tenor category.
| Tenor | Existing Rate (%) | Revised Rate (%) | Reduction (bps) |
|---|---|---|---|
| ≤ 3 months | 5.40% | 5.30% | 10 |
| >3 months & ≤6 months | 5.55% | 5.45% | 10 |
| >6 months & ≤1 year | 5.55% | 5.50% | 5 |
| >1 year & ≤ 3 Years | 5.55% | 5.50% | 5 |
Base Rate and BPLR Adjustments
The bank has also revised its Base Rate and Benchmark Prime Lending Rate, with both rates experiencing a reduction of 5 basis points each.
| Benchmark | Existing Rate (%) | Revised Rate (%) | Reduction (bps) |
|---|---|---|---|
| Base Rate | 9.60% | 9.55% | 5 |
| Benchmark Prime Lending Rate (BPLR) | 13.85% | 13.80% | 5 |
Unchanged Benchmark Rates
While several rates have been revised downward, the bank has maintained its Policy Repo Rate and Repo Linked Benchmark Lending Rates at their current levels.
| Benchmark | Rate (%) |
|---|---|
| Policy Repo Rate | 5.25% |
| Repo Linked Benchmark Lending Rates (RBLR) | 7.95% |
The rate revision announcement was communicated through the bank's Investor Services Cell and signed by AGM & Company Secretary Dina Nath Kumar on December 31, 2025. These changes reflect the bank's ongoing efforts to optimize its lending rate structure while maintaining competitive positioning in the market.
Historical Stock Returns for Indian Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.49% | +6.89% | -3.79% | +30.12% | +57.69% | +861.80% |
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