Canara Bank Cuts Overnight and 1-Month MCLR by 5 bps Effective February 12

Mumbai, February 11, 2026: State-owned Canara Bank has revised its Marginal Cost of Funds Based Lending Rate (MCLR), reducing select short-term tenors by 5 basis points, effective February 12, 2026.

The bank informed stock exchanges under Regulation 30 of SEBI (LODR) Regulations that the revised MCLR structure will come into effect from Thursday.

Key Changes in MCLR

Canara Bank has lowered:

• Overnight MCLR to 7.85% from 7.90%

• One-Month MCLR to 7.90% from 7.95%

Other tenors remain unchanged.

Revised MCLR Rates (Effective February 12, 2026)

• Overnight: 7.85% (Earlier 7.90%)

• One Month: 7.90% (Earlier 7.95%)

• Three Month: 8.15% (No change)

• Six Month: 8.50% (No change)

• One Year: 8.70% (No change)

• Two Year: 8.85% (No change)

• Three Year: 8.90% (No change)

What This Means for Borrowers

The reduction in short-term MCLR is expected to marginally benefit borrowers with loans linked to shorter reset periods, particularly working capital and short-duration floating rate loans.

However, key benchmark tenors such as the one-year MCLR — commonly used for home loans — remain unchanged at 8.70%.

Market Implications

The move signals a calibrated adjustment in short-term funding costs amid evolving liquidity and interest rate conditions. Investors and borrowers will closely track whether further revisions follow in the coming months.

Canara Bank shares are listed under Scrip Code 532483 on BSE and CANBK on NSE.