Indian Overseas Bank’s shares jumped 3.5% in early trade after the RBI‑endorsed MCLR hike, with the overnight rate climbing to 7.95% from 7.90%.
The 5‑basis‑point lift applies to six tenors – the one‑month rate stays at 8.25%; the three‑month rises to 8.50% from 8.45%; the six‑month to 8.75% from 8.70%; the one‑year and two‑year both hit 8.90% from 8.85%; the three‑year climbs to 8.95% from 8.90%.
Earlier this year, the bank posted a 34% surge in net interest income to ₹3,688 crore, and net profit jumped 49% to ₹1,659 crore, prompting a 3.5% lift in its stock price.
Market observers note that the modest bump keeps the bank’s borrowing costs in line with peers like State Bank of India, which raised its MCLR by 10 bps last quarter, and signals a cautious stance ahead of the next RBI review.
The bank has signalled that the new rates will remain until the next policy review; investors are watching for the upcoming Q4 filing on November 15, which could reveal further adjustments in the loan‑cost spread.