Indian Bank Hikes Prime Lending Rate, Cuts Those For Short-Tenure
Indian Bank raised the base rate from 9.8% to 9.85%, while the BPLR from 14.05% to 14.1%.
Public sector lender Indian Bank on Tuesday hiked the base rate and benchmark prime lending rate, that determine home loan interest rates, while reducing those for certain shorter tenure loan.
The base rate has been increased from 9.8% to 9.85%, while the BPLR from 14.05% to 14.1%, according to an exchange filing.
The Treasury Bills Linked Lending Rates or TBLR for tenures of three years and shorter up to three months have been cut to 6.65%.
The revised rates are effective from Oct. 3.
Indian Bank kept the Marginal Cost of funds based Lending Rate or MCLR unchanged across tenures. The MCLR is linked to the marginal cost of funds, operating costs, cost of carrying in cash reserve ratio and tenure premium. It is the minimum rate below which banks cannot lend.
Last week, Indian Bank's board approved raising additional long-term infrastructure bonds of up to Rs 5,000 crore. The approved additional funds will be raised over and above the Rs 5,000 crore already raised by the lender in fiscal 2025, according to an exchange filing on Thursday.
The funds will be raised in one or more tranches in the current or subsequent financial years, based on the requirements for funding the infrastructure and affordable housing, it said.
Earlier, the bank had invited bids to raise Rs 5,000 crore through the issue of 10-year infrastructure bonds. It includes a base value of Rs 2,000 crore and a greenshoe option of Rs 3,000 crore.
In the current financial year, the board of Indian Bank had approved raising up to Rs 12,000 crore by way of equity and debt.
Shares of Indian Bank closed 0.4% higher at Rs 526.2 apiece, compared to a 0.05% decline in the benchmark NSE Nifty. The stock has risen 24.45% in the last 12 months and 25.23% year-to-date.
