Indian Overseas Bank Cuts Overnight MCLR by 5 Bps Amid Government Stake Sale

Indian Overseas Bank (IOB) has reduced its overnight Marginal Cost of Funds-based Lending Rate (MCLR) by 5 basis points to 7.95%, effective January 15. This move follows a review by the bank's Asset Liability Management Committee. While the reduction is expected to have a limited impact on existing borrowers due to most loans being linked to longer tenors, new borrowers may see rates between 8.30% and 8.85%. The bank's shares are drawing investor attention amid this rate adjustment and an ongoing government Offer For Sale.