Indian Overseas Bank Lowers One-Month MCLR by 10 Basis Points

Indian Overseas Bank (IOB) announced that its Asset Liability Management Committee (ALCO), in a meeting on March 12, 2026, has reduced the one-month marginal cost of funds-based lending rate (MCLR) by 10 basis points to 8.20%, effective March 15, 2026.

IOB Reduced MCLR

According to an exchange filing, the committee reviewed MCLR calculations as of March 10, 2026, and decided to revise only the one-month tenor, leaving all other tenors unchanged. Post revision:

• Overnight MCLR: 7.95%
• Three-month MCLR: 8.40%
• Six-month MCLR: 8.65%
• One-year MCLR: 8.80%
• Two-year MCLR: 8.80%
• Three-year MCLR: 8.85%

The revised rates will take effect from March 15, 2026, and will remain in force until the next review.

IOB Q3 Performance Highlights

In the December quarter, IOB posted a strong performance, with net profit rising 56.2% year-on-year to ₹1,365 crore, up from ₹873.7 crore in the same period last year.

• Net Interest Income (NII) increased 18.3% to ₹3,298.5 crore from ₹2,789 crore a year earlier.
• Asset quality improved, with gross non-performing assets (NPAs) falling to 1.54% from 1.83% quarter-on-quarter, and net NPAs declining to 0.24% from 0.28%.

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