Indian Overseas Bank Announces Reduction in MCLR Effective April 15, 2026

Indian Overseas Bank (IOB) has announced a revision in its Marginal Cost of Funds Based Lending Rate (MCLR) across specific tenors. Following a review by the Bank's Asset Liability Management Committee (ALCO), the lender has decided to reduce rates by 5 basis points (bps) for its overnight and long-term benchmarks.

The revised rates are set to take effect from April 15, 2026. This move is expected to slightly lower the borrowing costs for new loans and existing floating-rate loans linked to these specific benchmarks.

Key Rate Revisions

The reduction specifically targets the shortest and one-to-two-year borrowing periods:

Overnight MCLR: Reduced from 7.95% to 7.90%.

One-Year MCLR: Reduced from 8.80% to 8.75%.

Two-Year MCLR: Reduced from 8.80% to 8.75%.

Rates for other tenors, including the one-month (8.20%), three-month (8.40%), six-month (8.65%), and three-year (8.85%) benchmarks, remains unchanged.

The One-Year MCLR is a critical benchmark as it typically serves as the base for pricing most retail loans, such as home, car, and personal loans. A 5 bps cut, while modest, signals a marginal relief for consumers and businesses tied to these rates. Existing borrowers will see the benefit of this reduction during their next reset date, as per their loan agreements.

Shares of Indian Overseas Bank was last trading in BSE at Rs. 34.48 as compared to the previous close of Rs. 34.70. The total number of shares traded during the day was 298264 in over 1358 trades.

The stock hit an intraday high of Rs. 34.61 and intraday low of 33.36. The net turnover during the day was Rs. 10193828.00.

Source : Equity Bulls

Keywords

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