Indian Overseas Bank — Important, 10-01-2025: General Updates

The Assets and Liabilities Management Committee of Indian Overseas Bank has revised the Marginal Cost of Funds based Lending Rate (MCLR), effective from 15.01.2025. The MCLR has been increased by 5 basis points for the Three-Month, Six-Month, and One-Year tenors, while the Two-Year tenor sees a rise of 10 basis points. The updated MCLR rates are as follows: Three-Month MCLR is now 8.65%, Six-Month MCLR is 8.90%, One-Year MCLR is 9.10%, and the Two-Year MCLR is at 9.10%. This adjustment may influence borrowing costs and could affect customer loans linked to MCLR, impacting the bank's interest income and margins going forward. Investors should monitor potential shifts in loan demand as funding costs adjust.