Indian Overseas Bank cuts overnight, 1-year and 2-year MCLR by 5 bps each

Indian Overseas Bank said on Monday, April 13 that its Asset Liability Management Committee met on April 13, 2026 and reviewed the bank’s MCLR calculations as of April 10, 2026.

The bank added that the committee decided to cut the overnight, 1-year, and 2-year MCLR rates by five basis points each.

As per the revised structure, the overnight marginal cost of funds based lending rate (MCLR) has been reduced from 7.95% to 7.90%, while the 1-year MCLR has been cut from 8.80% to 8.75% and the 2-year MCLR from 8.80% to 8.75%.

As per the exchange fillings other tenures remain unchanged. The 1-month MCLR stays at 8.20%, the 3-month MCLR at 8.40%, the 6-month MCLR at 8.65%, and the 3-year MCLR at 8.85%.

The revised MCLR rates will remain effective from April 15, 2026 until further review.

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Q3 results

IOB had recorded a net profit jump of 56.2% in Q3 FY26 year-on-year to ₹1,365 crore, compared with ₹873.7 crore in the same period last year.

The bank's net interest income grew 18.3% year-on-year to ₹3,298.5 crore from ₹2,789 crore.

Asset quality also improved during the quarter, with gross non-performing assets easing to 1.54% from 1.83% on a quarter-on-quarter basis, while net NPAs declined to 0.24% from 0.28% in the previous quarter.

Shares of Indian Overseas Bank closed at ₹34.60 on April 13, down ₹0.10 or 0.29%. The stock remained largely range-bound through the session, ahead of the bank announced MCLR revision.

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