Indian Bank has announced a revision in its benchmark lending rates, which will come into effect from June 3, 2026.
According to the revised rates, the overnight MCLR and one-month MCLR will remain unchanged at 7.90% and 8.20%, respectively. However, the three-month MCLR has been increased from 8.40% to 8.50%, the six-month MCLR from 8.65% to 8.75%, and the one-year MCLR from 8.75% to 8.85%. The one-year MCLR is important because many retail and business loans are linked to this benchmark. As a result, borrowers with loans linked to MCLR may see a slight increase in their interest rates when their loans are reset.
The bank has also increased its Treasury Bills Linked Lending Rates (TBLR). The rate for loans with a tenure of up to three months has been raised from 5.25% to 5.35%. For loans above three months and up to six months, the rate has been increased from 5.45% to 5.55%. Similarly, the TBLR for loans above six months and up to one year, as well as loans above one year and up to three years, has been increased from 5.60% to 5.75%.
At the same time, Indian Bank has decided to keep several key benchmark rates unchanged. The Base Rate will continue at 9.55%, the Benchmark Prime Lending Rate (BPLR) will remain at 13.80%, the Repo Linked Benchmark Lending Rate (RBLR) will stay at 7.95%, and the Policy Repo Rate remains at 5.25%.
MCLR
| Tenor | Existing Rate (%) | Revised Rate (%) |
|---|---|---|
| Overnight | 7.90% | 7.90% |
| 1 Month | 8.20% | 8.20% |
| 3 Months | 8.40% | 8.50% |
| 6 Months | 8.65% | 8.75% |
| 1 Year | 8.75% | 8.85% |
TBLR
| Tenor | Existing Rate (%) | Revised Rate (%) |
|---|---|---|
| Up to 3 Months | 5.25% | 5.35% |
| More than 3 Months and up to 6 Months | 5.45% | 5.55% |
| More than 6 Months and up to 1 Year | 5.60% | 5.75% |
| More than 1 Year and up to 3 Years | 5.60% | 5.75% |
The revised MCLR and TBLR rates will be effective from 03 June 2026.
Unchanged Rates
| Benchmark | Rate (%) |
|---|---|
| Base Rate | 9.55% |
| Benchmark Prime Lending Rate (BPLR) | 13.80% |
| Policy Repo Rate | 5.25% |
| Repo Linked Benchmark Lending Rate (RBLR) | 7.95% |
The bank stated that the Base Rate, BPLR, Policy Repo Rate and RBLR will remain unchanged.
