Indian Bank: Big news for Indian Bank customers. . Indian Bank has decided to increase some key benchmark rates associated with loan interest rates. The new rates will be effective from June 3, 2026. As a result, customers whose loans are linked to MCLR or TBLR may experience an increase in EMI or a longer repayment period. However, the bank has kept some key rates unchanged for now.
State-owned Indian Bank has decided to increase some of its key lending rates. The decision was made following a review by the bank’s Asset Liability Management Committee (ALCO). The new rates will be effective from June 3, 2026. The bank informed the stock exchanges that the changes have been made to the MCLR and TBLR (Treasury Bill Linked Lending Rate), while other key rates have been kept unchanged.
How much did MCLR increase?
Indian Bank has increased its 3-month MCLR from 8.40% to 8.50%. Its 6-month MCLR has increased from 8.65% to 8.75%, and its 1-year MCLR has increased from 8.75% to 8.85%. However, its overnight MCLR has remained unchanged at 7.90% and 1-month MCLR at 8.20%.
The TBLR rates have also seen an increase
The bank has raised its TBLR rates. For terms of up to 3 months, the rate has gone up from 5.25% to 5.35%. For terms between 3 and 6 months, the rate has increased from 5.45% to 5.55%. Likewise, for terms between 6 months to 1 year and from 1 year to 3 years, the TBLR has gone up from 5.60% to 5.75%.
These rates remain unchanged
The bank has kept the base rate steady at 9.55 percent, the benchmark prime lending rate (BPLR) at 13.80 percent, the policy repo rate at 5.25 percent, and the repo linked benchmark lending rate (RBLR) at 7.95 percent without any alterations.
What will the impact be?
The rise in MCLR and TBLR may lead to higher costs for some loans tied to these rates. Customers with loans linked to these benchmark rates might also experience an increase in their EMIs.
