Indian Bank Hikes Lending Rates By Up To 25 Basis Points; All You Need To Know

The marginal cost of funds-based lending rates (MCLR) was raised by up to 25 basis points on Monday by the state-owned Indian Bank. According to a regulatory filing by Indian Bank, the revised rates are valid as of January 3.

The bank’s Asset Liability Management Committee (ALCO) examined the Marginal Cost of Funds-based Lending Rate (MCLR), Treasury Bills Linked Lending Rates (TBLR), Base Rates, and Benchmark Prime Lending Rate (BPLR), and decided to raise them across different tenors.

The majority of consumer loans, including auto, personal, and house loans, are fixed at the one-year rate. According to the bank, the one-month to six-month MCLR rate increased by 20 basis points, while the overnight rate increased by 25 basis points to 7.75 percent. It stated that the new rate will be hiked to 8.30 percent from 8.20 percent for one-year maturities.

In addition, the lender changed the Treasury Bills Benchmark Lending Rate (TBLR), which was formerly 6.40 to 6.85 percent for different tenors. The benchmark prime lending rate has increased to 13.35 percent, while the base rate has increased by 25 basis points to 9.10 percent.

Only residents, either alone or jointly with another resident citizen, are eligible for senior benefits. Premature withdrawals of retail rupee term deposits, including NRE and recurring deposits, will incur a penalty from June 1, 2022, of 0.50% for all tenors for deposits under Rs. 5 lakh and 1% for all tenors for deposits of Rs. 5 lakh and above.

The South Indian Bank’s Marginal Cost of Funds Based Lending Rates (MCLR) are in force as of December 20, 2022. The bank’s MCLRs are 8.35% for overnight, 8.40% for one month, 8.55% for three months, 8.75% for six months, and 9.10% for one year.

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