Indian Bank revises TBLR across tenors; other lending rates unchanged

Public sector lender Indian Bank on Thursday (July 2) said its Asset Liability Management Committee has reviewed benchmark lending rates and revised the Treasury Bills Linked Lending Rate (TBLR), while keeping other key lending benchmarks unchanged.

The bank said the revised TBLR will be effective from July 3, 2026. Under the revision, the TBLR for up to 3 months tenor has been reduced to 5.30% from 5.35%, while the rate for above 3 months and up to 6 months remains unchanged at 5.55%.

For longer tenors, the TBLR for above 6 months and up to 1 year has been increased to 5.85% from 5.75%, while the same revision applies to the above 1 year and up to 3 years tenor, which also rises to 5.85% from 5.75%.

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The bank said Marginal Cost of Funds based Lending Rate (MCLR), Base Rate, Benchmark Prime Lending Rate (BPLR), Policy Repo Rate and Repo Linked Benchmark Lending Rate (RBLR) remain unchanged.

MCLR ranges from 7.90% for overnight to 8.85% for 1-year tenor, while Base Rate stands at 9.55% and BPLR at 13.80%. RBLR remains at 7.95%. The policy repo rate is unchanged at 5.25%.

Yesterday, Indian Bank reported a 13.6% year-on-year increase in total business to ₹15.28 lakh crore for the quarter ended June 30, according to its provisional business update.

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The public sector lender’s gross advances rose 13.9% year-on-year and 2.7% sequentially to ₹6.85 lakh crore, while total deposits increased 13.3% from a year ago and 1.8% from the previous quarter to ₹8.43 lakh crore. Loan growth continued to marginally outpace deposit growth, indicating sustained credit demand during the quarter.

The bank’s CASA ratio stood at 39.64% at the end of the June quarter, compared with 39.67% as of March 31, 2026, and 38.97% a year earlier, remaining broadly stable on a sequential basis while improving slightly from a year ago.

Within deposits, savings bank deposits rose 12.9% year-on-year to ₹2.70 lakh crore, while current account deposits increased 26.3% to ₹0.48 lakh crore. Domestic RAM (Retail, Agriculture and MSME) advances stood at ₹4.17 lakh crore, up 14.8% from a year earlier, reflecting continued growth in the bank’s core retail and priority lending segments.

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Shares of Indian Bank Ltd ended at ₹815.20, down by ₹5.75, or 0.70%, on the BSE.