Indian Bank trims one-year MCLR to 8.75%, easing borrowing costs at the margin

What the MCLR cut means for borrowers and markets

 

Indian Bank has cut its one-year MCLR by 5 basis points to 8.75%, a modest relief for customers whose home, MSME, and working-capital loans reset to the annual benchmark. While MCLR shifts do not immediately affect fixed-rate loans, they gradually pass through at the next reset date. The adjustment suggests stable funding costs and disciplined pricing, balancing deposit competition with credit growth. Analysts see the cut as tactical—supporting affordability without materially compressing net interest margins—especially as banks weigh liquidity conditions and year-end balance sheet positioning.

 

Important points / notable updates

 

 

Sources: Indian Bank exchange/website disclosures; Reuters banking updates; Business Standard; Moneycontrol banking rates coverage.