South Indian Bank Revises Lending Rates Across Multiple Tenors Effective July 20

Private sector lender The South Indian Bank Limited (NSE: SOUTHBANK; BSE: 532218) has announced a revision in its Marginal Cost of Funds Based Lending Rates (MCLR) across multiple tenors.

The bank stated that the newly calibrated interest rates will come into effect from July 20, 2026.

Revised MCLR Structure by Tenor

The bank's updated benchmark lending rates for different credit tenors have been structured as follows:

Overnight MCLR: Set at 8.00%
One-Month MCLR: Set at 8.45%
Three-Month MCLR: Set at 9.40%
Six-Month MCLR: Set at 9.45%
One-Year MCLR: Set at 9.50%

Banking and Market Context

The Marginal Cost of Funds Based Lending Rate (MCLR) serves as the internal benchmark rate below which a commercial bank in India cannot lend, except in specific cases permitted by the Reserve Bank of India (RBI). It is closely linked to the bank's internal cost of funds, including deposit rates and operational expenses.

The one-year MCLR is a particularly vital matrix for retail borrowers, as it acts as the primary benchmark anchor for most consumer credit products, including housing loans, vehicle loans, and personal credit lines. Changes in this rate directly influence the interest rate reset cycles for existing borrowers and determine the pricing structure for new credit originations, adjusting the bank's net interest margin (NIM) trajectory in the upcoming quarters.

Shares of The South Indian Bank Limited was last trading in BSE at Rs. 44.62 as compared to the previous close of Rs. 45.33. The total number of shares traded during the day was 705750 in over 4363 trades.

The stock hit an intraday high of Rs. 45.75 and intraday low of 44.15. The net turnover during the day was Rs. 31448777.00.

Source : Equity Bulls

Keywords

TheSouthIndianBank INE683A01023 MCLR Revision