Indian Bank Lending Rates Changes and Updates

Indian banks have been adjusting their lending rates in response to changes in the monetary policy of the Reserve Bank of India (RBI). The RBI's decision to cut the repo rate has led to a decrease in lending rates by many Indian banks.

The repo rate cut has resulted in a reduction in the marginal cost of funds-based lending rate (MCLR) by several banks. For instance, State Bank of India (SBI) has reduced its MCLR by 0.1% to 8.15% for the one-year tenor.

Banks have been passing on the benefits of lower interest rates to their customers, offering lower EMIs and reduced borrowing costs. This is a welcome relief for individuals and businesses looking to take loans.

The Indian banking system has been undergoing significant changes in recent years, with a focus on digitalization and innovation.

Consider reading: Union Bank of India Fixed Deposit Rates

Indian Bank has made several changes to its lending rates in recent times. One such change was an increase in the base rate and benchmark prime lending rate, which determines home loan interest rates, while reducing those for certain shorter tenure loans. The base rate was increased from 9.8% to 9.85%, while the BPLR from 14.05% to 14.1%, effective from October 3.

The bank also raised its Treasury Bills Linked Lending Rates or TBLR for tenures of three years and shorter up to three months to 6.65%. This change was made to adjust the lending rates in line with the current market conditions.

Indian Bank has also kept its Marginal Cost of Funds based Lending Rate or MCLR unchanged across tenures. The MCLR is linked to the marginal cost of funds, operating costs, cost of carrying in cash reserve ratio and tenure premium. It is the minimum rate below which banks cannot lend.

Here's a summary of the changes made by Indian Bank to its lending rates:

Indian Bank has also hiked the one-year MCLR to 8.10 per cent. The Asset Liability Management Committee (ALCO) of the bank has reviewed the MCLR and the new rates are effective from November 3.

Indian Bank has increased its base rate and benchmark prime lending rate, which determine home loan interest rates. The base rate has been raised from 9.8% to 9.85%, while the BPLR has been increased from 14.05% to 14.1%.

The bank has also reduced the Treasury Bills Linked Lending Rates (TBLR) for certain shorter tenure loans, such as those with tenures of three years and shorter up to three months, to 6.65%. This rate cut is effective from October 3.

Indian Bank kept its Marginal Cost of Funds based Lending Rate (MCLR) unchanged across tenures. The MCLR is linked to the marginal cost of funds, operating costs, cost of carrying in cash reserve ratio, and tenure premium.

ICICI Bank and Indian Bank have raised their benchmark lending rate by up to 35 basis points, making loans costlier for borrowers. This rate hike is effective from November 3.

The revised rates are as follows: ICICI Bank's one-year MCLR is now 8.30%, while Indian Bank's overnight MCLR is 7.40%. The one-year MCLR rate for Indian Bank has been increased to 8.10%.

The Asset Liability Management Committee (ALCO) of Indian Bank has reviewed the MCLR and the new rates are effective from November 3.

Expand your knowledge: Icici Bank Saving Account Interest Rate