Indian Overseas Bank Cuts Overnight MCLR by 5 bps Effective January 15 2026

Public sector lender Indian Overseas Bank (IOB) has announced a reduction in its Overnight Marginal Cost of Funds Based Lending Rate (MCLR) by 5 basis points, bringing it down from 8.00% to 7.95%, effective January 15, 2026.

The decision was taken by the Asset Liability Management Committee (ALCO) of the Bank during its meeting held on January 13, 2026, after reviewing the MCLR workings as of January 10, 2026.

According to the revised structure, all other MCLR tenors remain unchanged. The updated rates are as follows:

Overnight MCLR: 7.95%
One Month MCLR: 8.30%
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 new rates will remain in force until the next review. This move is expected to benefit borrowers with short-term and overnight loans, offering marginally lower interest costs.

The revision was formally communicated to stock exchanges in compliance with SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015.