South Indian Bank Share Price in Focus; Revises MCLR Across Tenors from January 20

South Indian Bank Ltd remained in focus on Tuesday after the lender announced a revision in its Marginal Cost of Funds Based Lending Rates. 

On January 20, 2026, as of 10:18 AM, South Indian Bank share price was trading at ₹44.75, down 0.78% from the previous close of ₹45.10. During the session, the share opened at ₹45.32 and touched an intraday high of ₹45.62, while the day’s low stood at ₹43.71.

Revision in Lending Rates

On January 17, 2026, the bank informed exchanges that it has revised its MCLR for multiple tenors with effect from January 20, 2026. 

The updated rates reflect the current interest rate environment and funding costs. The overnight MCLR has been fixed at 8.05%, while the one-month MCLR now stands at 8.50%. The three-month tenor has been revised to 9.45%, and the six-month MCLR has been set at 9.50%. For the one-year tenor, which serves as a benchmark for many retail loans, the rate has been fixed at 9.55%.

Impact on Borrowers

The change in MCLR will influence interest rates on new loans and those existing loans that are linked to the MCLR benchmark. Borrowers with floating rate loans may see a change in their equated monthly instalments depending on reset clauses. 

The revision is part of the bank’s regular asset-liability management process and aligns lending rates with prevailing market conditions.

Record Profit Performance in Q3 FY26

South Indian Bank reported its highest ever quarterly net profit of ₹374.32 crore for Q3 FY 2025-26, registering a growth of 9% compared with ₹341.87 crore in the corresponding quarter of the previous year. 

Net profit for the nine months ended December 2025 also rose by 9% to ₹1,047.64 crore against ₹960.69 crore in December 2024, reflecting sustained earnings momentum. 

Pre-provisioning operating profit for the quarter increased 10% to ₹584.33 crore from ₹528.84 crore a year ago, indicating stronger core performance. 

The bank also witnessed healthy growth in non-interest income, which climbed 19% year on year to ₹485.93 crore from ₹409.22 crore, supported by improved fee income and treasury gains.

Also Read: South Indian Bank Reports 9% YoY Rise in Q3 FY26 Net Profit!

Conclusion

The latest MCLR revision signals South Indian Bank’s effort to align its lending framework with market realities. While the immediate impact on the stock has been muted, the rate changes are expected to shape loan growth and margins in the coming quarters. Investors will watch upcoming business updates and asset quality trends for clearer direction.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.