New Delhi: State-owned Indian Bank said in a regulatory filing that it has reviewed the Marginal Cost of funds-based Lending Rate (MCLR) and Treasury Bills Linked Lending Rates (TBLR) on Friday. Further, the filing noted that the revised TBLR and MCLR are effective from June 3. Other Benchmark Rates viz, Policy Repo Rate, RBLR, Base Rate, and BPLR remain unchanged, it added. The MCLR and TBLR were reviewed by the Asset Liability Management Committee (ALCO).
The bank's one-month MCLR increased from 8.1 percent to 8.15 percent. Its three-month MCLR increased from 8.2 percent to 8.25 percent. MCLR for six months increased from 8.45 percent to 8.5 percent. Its one-year MCLR increased from 8.6 percent to 8.65 percent.
The bank's TBLR rate for more than three months and less than or equal to six months increased from 6.95 percent to seven percent. The TBLR for more than six months and less than or equal to the one-year increased from 7.05 percent to 6.95 percent. Further, the TBLR for more than one year and less than or equal to three years increased from 7.05 percent to 6.95 percent.
Banks may revise their Marginal Cost of Funds Based Lending Rate (MCLR) and Tenor-Based Benchmark Lending Rate (TBLR) due to various factors that influence the cost of funds and market conditions. The primary reasons for revising MCLR and TBLR include changes in repo rates, cost of funds, market competition, and asset-liability management.