Indian Overseas Bank Share Price in Focus As MCLR And Base Rate Reduced

Indian Overseas Bank (IOB) has announced a reduction in its Marginal Cost of Funds based Lending Rate (MCLR) and base rate, effective from August 15, 2025. 

This decision follows a review by the bank’s Assets and Liabilities Management Committee (ALCO) on August 11, 2025, aimed at adjusting rates in line with its funding and lending cost assessments.

Reduction In MCLR Across Tenors

The bank has reduced MCLR by 10 basis points across all loan tenors. The revised MCLR effective from August 15, 2025, is as follows:

• Overnight: 8.05%
• 1 month: 8.30%
• 3 months: 8.45%
• 6 months: 8.70%
• 1 year: 8.90%
• 2 years: 8.90%
• 3 years: 8.95%

This move reflects IOB’s alignment with market conditions and its focus on maintaining competitive lending rates.

Base Rate Revision

In addition to the MCLR change, IOB’s ALCO has also reduced the base rate by 20 basis points to 9.80%, effective August 15, 2025. The base rate will remain in effect until the next review.

Indian Overseas Bank Share Price Performance 

As of 9:55 AM on August 12, 2025, the Indian Overseas Bank share price was trading flat at ₹36.02 on NSE. 

Read More: Top 5 Public Sector Banks with Highest Employee Count in FY25!

Conclusion 

The changes in MCLR and base rate mark another step in the bank’s periodic review of its lending structure. Market participants will observe how these adjustments influence borrowing trends in the coming months.

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