Indian Overseas Bank Reduces MCLR by 10 Basis Points Across All Tenors, Effective July 15, 2025

Indian Overseas Bank has announced a comprehensive reduction in its Marginal Cost of Funds Based Lending Rates (MCLR) by 10 basis points across all tenors, effective July 15, 2025. The bank’s Assets and Liabilities Management Committee approved the rate revision at its meeting held on July 14, 2025, following a review of MCLR workings as on July 10, 2025.

Uniform Rate Reduction Benefits All Borrower Categories
The Assets and Liabilities Management Committee (ALCO) implemented a uniform 10 basis points reduction across all MCLR tenors, demonstrating the bank’s commitment to passing on the benefits of improved cost of funds to customers. Overnight MCLR decreased from 8.25% to 8.15%, while One-Month MCLR reduced from 8.50% to 8.40%.

Three-Month MCLR declined from 8.65% to 8.55%, and Six-Month MCLR fell from 8.90% to 8.80%. The One-Year MCLR and Two-Year MCLR both decreased from 9.10% to 9.00%, while Three-Year MCLR reduced from 9.15% to 9.05%.

Strategic Pricing Alignment with Market Conditions
The comprehensive rate revision reflects Indian Overseas Bank’s adaptive approach to interest rate management, responding to evolving market conditions and optimizing lending competitiveness. The bank’s decision to implement uniform reductions across all tenors demonstrates consistent cost structure improvements and efficient liability management practices.

This pricing strategy enhances the bank’s ability to attract quality borrowers while supporting credit growth objectives across retail, MSME, and corporate segments. The effective date of July 15, 2025, provides customers with immediate access to reduced borrowing costs, supporting economic activity and business expansion initiatives.

Regulatory Compliance and Transparent Communication
Compliance Officer Ram Mohan K signed the regulatory disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparent communication with investors and regulatory authorities. The filing reference IRC/104/2025-26 demonstrates adherence to structured disclosure protocols while maintaining corporate governance standards.

The bank’s proactive communication approach provides advance notice to customers about rate changes, enabling informed borrowing decisions and loan restructuring opportunities. This transparent disclosure supports customer relationship management while fulfilling regulatory requirements for listed entities.

Disclaimer: The information provided is for educational purposes only and does not constitute financial advice. Please conduct your own research and consult a qualified advisor before making investment decisions. Any investment decisions you make based on this information are solely at your own risk.

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