Stability Meets Strategy: Bank Of India Keeps Rates Firm

Bank of India has announced that its Marginal Cost of Fund based Lending Rate (MCLR) and Repo Based Lending Rate (RBLR) will remain unchanged effective May 1, 2026, while the Fixed Rate Spread (FRS) has been revised across tenors. The move signals stability in lending benchmarks but introduces calibrated adjustments in fixed-rate offerings.  

The public sector lender confirmed that its 1-year MCLR will continue at 8.75%, with other tenors ranging between 7.70% and 8.90%. While repo-linked lending rates remain steady, the bank has revised its fixed-rate spreads, impacting borrowers opting for long-term fixed-rate loans.  

Key highlights  

• MCLR unchanged across all tenors effective May 1, 2026  
• 1-year MCLR steady at 8.75%  
• Repo Based Lending Rate remains unchanged  
• Fixed Rate Spread revised across 1-year to 5-year tenors  
• Longer tenors above 5 years include tenor premium plus CRP  
  
  

Sources: Bank of India regulatory filing