Indian Bank Slashes Lending Rates, Waives Minimum Balance Penalty; Big Relief for Borrowers & Savers

Indian Bank has announced a downward revision in several major lending rates and has also waived minimum balance charges for savings bank account holders. The bank stated that these changes are aimed at making banking more affordable and are a part of a review which is carried out by the bank's Asset Liability Management Committee (ALCO).

MCLR, TBLR, Base Rate, and BPLR Revised Downwards

Effective from July 3, 2025, the bank has reduced the Marginal Cost of Funds Based Lending Rates also known as MCLR, Treasury Bill Linked Lending Rates or TBLR, Base Rate, and Benchmark Prime Lending Rate or BPLR across various tenors. The key rate changes are as follows:

• MCLR for ≤ 3 months reduced from 5.80% to 5.40%
• 6-month MCLR cut from 5.80% to 5.50%
• 1-year to 3-year MCLR also reduced to 5.50%
• Base Rate brought down from 9.80% to 9.70%
• BPLR revised from 14.05% to 13.95%

These reductions are expected to benefit borrowers by lowering EMIs on various types of loans such as housing, personal, and vehicle loans.

TBLR and Other Benchmark Rates Adjusted

The TBLR rates have also been revised, with marginal reductions across short-term periods. Additionally, benchmark lending rates such as 1-month, 3-month, 6-month, and 1-year rates have been slightly trimmed:

• 1-month rate: now 8.40% (from 8.45%)
• 3-month rate: 8.60% (from 8.65%)
• 6-month rate: 8.85% (from 8.90%)
• 1-year rate: 9.00% (from 9.05%)

However, the Repo Linked Benchmark Lending Rate (RBLR) remains unchanged at 8.20%, and the Policy Repo Rate stays at 5.50%.

Indian Bank Waives Minimum Balance Penalty Charges

Indian Bank has completely waived the penalty charges for not maintaining the minimum balance in savings bank accounts which is much needed relief for account holders. This change will come into effect from July 7, 2025, and is applicable to all Indian Bank SB account customers. The move is expected to benefit thousands of small savers and encourage greater financial inclusion.

Indian Bank Share Price Today

Indian Bank shares today closed in red at Rs. 646.00, down Rs. 4.65 or 0.71% on July 3rd. The stock has been moving in a narrow range over the past five trading sessions, showing a mild 1.48% gain in the last 5 days. However, the stock has delivered impressive returns up 24.82% so far this year and a whopping 900.77% over the past 5 years. Currently, Indian Bank's share price is hovering close to its 52-week high.