Indian Overseas Bank cuts MCLR on some tenors

Indian Overseas Bank (IOB) has announced a revision in its Marginal Cost of Funds Based Lending Rate (MCLR) following a meeting of its Assets and Liabilities Management Committee on September 11, 2025. The new rates will be effective from September 15, 2025.

The bank has reduced the MCLR by 5 basis points (bps) for Overnight, One-year, Two-year, and Three-year tenors. Specifically, the Overnight MCLR will decrease from 8.05% to 8.00%, the One-year MCLR from 8.90% to 8.85%, the Two-year MCLR from 8.90% to 8.85%, and the Three-year MCLR from 8.95% to 8.90%.

Conversely, the MCLR for One-Month, Three-Month, and Six-Month tenors remains unchanged. The One-Month MCLR will stay at 8.30%, the Three-Month MCLR at 8.45%, and the Six-Month MCLR at 8.70%. This adjustment reflects the bank's latest review of its MCLR workings as of September 10, 2025.