South Indian Bank Revises Repo-Linked Lending Rates

South Indian Bank has revised the marginal cost of fund-based lending rate applicable for multiple tenors, according to an exchange filing on Wednesday.

The revised MCLR, which comes into effect from Friday, are as follows — the overnight MCLR is 7.65%, the one-month MCLR is 8.3%. The three-month MCLR is 9.6%. The six-month MCLR is 9.65%. The one-year MCLR is 9.75%, the filing said.

The Reserve Bank of India's monetary policy committee, led by Governor Sanjay Malhotra, reduced the key lending rate. This reduction aims to stimulate economic activity by making borrowing cheaper for businesses and consumers.

It also announced a reduction in the Cash Reserve Ratio by 100 basis points, lowering it from 4% to 3%. This cut will be implemented in four staggered stages and is expected to release primary liquidity of Rs 2.5 lakh crore into the banking system.

The RBI has shifted its policy stance from 'accommodative' to 'neutral'. This change indicates a more balanced approach, suggesting that future rate cuts or hikes will be data-driven and dependent on evolving economic conditions.

Shares of South Indian Bank closed 0.60% lower at Rs 29.6 apiece on the NSE, compared to a 0.17% decline in the benchmark Nifty on Wednesday. It has risen 6.97% in the last 12 months and 18.43% on a year-to-date basis.