The Indian Bank has hiked its MCLR or marginal cost of funds-based lending rate by 5 basis points on most tenures, except the overnight and one-month ones, effective June 3, 2024.
The increase in the Marginal Cost of Funds-based Lending Rate (MCLR) means that borrowers’ equated monthly instalments (EMIs) for linked loans, such as home, auto, and personal loans, will rise. Loans tied to the MCLR are subject to a reset period, after which the interest rates for borrowers are adjusted.
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As per a note from the bank, the Asset Liability Management Committee (ALCO) has not only reviewed the MCLR but also the Treasury Bills-Linked Lending Rates (TBLR) with effect from June 3 till the next review.
The new benchmark rates are given below:
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Banks gauge minimum interest rates by considering factors such as the cost of funds, operating costs, and profit margin.
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As far as the TBLR rates go, the bank has made a marginal change in the below or equal to three-month tenure, as shown below:
Indian Bank stock was trading over 5% higher at BSE on Monday at around 11.30 am.
