Indian Overseas Bank Cuts Overnight MCLR by 5 BPS, Effective Jan 15, 2026

• Indian Overseas Bank (IOB) reduced its overnight Marginal Cost of Funds-based Lending Rate (MCLR) by 5 basis points.
• The new overnight MCLR is 7.95%, effective from January 15, 2026.
• The decision was made by the bank's Asset Liability Management Committee (ALCO) on January 13, 2026.
• All other MCLR tenors, including one-month (8.30%), three-month (8.40%), and one-year (8.80%), remain unchanged.
• Most existing borrowers will not see a change in interest costs, while new borrowers face rates from 8.30% to 8.85%.

Why It Matters: IOB cut its overnight MCLR to 7.95% effective January 15, 2026, keeping other tenors unchanged.