South Indian Bank announced revisions to its Marginal Cost of Funds based Lending Rate (MCLR) across multiple tenors, effective January 20, 2026, reflecting current interest rate conditions and funding costs. The update was communicated to stock exchanges on January 17, 2026.
Revised MCLR Rates
- Overnight MCLR: 8.05%
- One-month MCLR: 8.50%
- Three-month MCLR: 9.45%
- Six-month MCLR: 9.50%
- One-year MCLR (benchmark for retail loans): 9.55%
The revision will impact interest rates on new loans and existing floating-rate loans linked to MCLR, potentially altering equated monthly instalments (EMIs) based on loan reset clauses. The adjustment is part of the bank’s routine asset-liability management to align lending rates with prevailing market conditions.
Strong Q3 FY26 Financial Performance
South Indian Bank recorded its highest-ever quarterly net profit of ₹374.32 crore in Q3 FY26, marking 9% growth from ₹341.87 crore in Q3 FY25. For the nine months ended December 2025, net profit rose to ₹1,047.64 crore, up 9% from ₹960.69 crore in the previous year, demonstrating sustained earnings momentum.
Pre-provisioning operating profit (PPOP) for the quarter increased 10% to ₹584.33 crore from ₹528.84 crore, reflecting stronger core performance. Additionally, non-interest income grew 19% year-on-year to ₹485.93 crore from ₹409.22 crore, supported by higher fee income and treasury gains.
Summary
South Indian Bank has revised its MCLR rates effective January 20, 2026, with the one-year tenor set at 9.55%, impacting new and floating-rate loans. The bank also reported a record Q3 net profit of ₹374.32 crore, driven by strong core performance and robust non-interest income, reflecting continued financial strength and earnings growth.
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