Tamilnad Mercantile Bank Hikes MCLR Across All Tenors by 10 Basis Points

Private sector lender Tamilnad Mercantile Bank Limited (TMB) has announced a uniform upward revision of 10 basis points (0.10%) in its Marginal Cost of Funds Based Lending Rate (MCLR) across all borrowing tenors. The revised interest rates will raise the cost of floating-rate loans tied to these structural benchmarks, effective from July 7, 2026.

Revised Pricing Framework Across Loan Tenors

The systematic hike across the asset pricing matrix adjusts TMB's lending benchmarks as follows:

Overnight and One-Month Term: Rates have been bumped up to 7.70%, rising from the previous floor of 7.60%.

Three-Month Term: The lending rate scales up to 8.40% against the previous benchmark of 8.30%.

Six-Month Term: The benchmark has been re-anchored to 8.95%, up from 8.85%.

One-Year Term: The critical long-term anchor rate-which dictates pricing for the bulk of retail, automobile, and home loans-moves up to 9.35% from the prior 9.25% bracket.

The upward pricing adjustments made by the Thoothukudi-headquartered lender reflect an ongoing sector-wide rebalancing of deposit acquisition costs against system liquidity constraints within the Indian banking landscape. An elevated MCLR automatically impacts borrowers on floating rate contracts tied directly to the bank's internal cost of funds, driving marginal yield expansions for the lender on its next repricing cycle.

Shares of Tamilnad Mercantile Bank Limited was last trading in BSE at Rs. 757.95 as compared to the previous close of Rs. 777.45. The total number of shares traded during the day was 7311 in over 503 trades.

The stock hit an intraday high of Rs. 782.95 and intraday low of 756.20. The net turnover during the day was Rs. 5617467.00.

Source : Equity Bulls

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TamilnadMercantileBank INE668A01016 TMB PrivateBank MCLR