Home / News / India /  Indian Bank hikes its repo benchmark rate on all loans by 25 bps to 6.50%

In line with RBI's key repo rate hike by 25 basis points (bps) to 6.50% on Wednesday, the public sector lender Indian Bank has raised its REPO and RBLR rates with effect from 09.02.2023.

“Monetary Policy Committee (MPC) of RBI, at its meeting held during February 06 - 08, 2023, has increased the Policy REPO rate by 25 bps. Accordingly, the revised rate is detailed below for REPO and RBLR accounts and is effective from 09.02.2023 till next review," said Indian Bank in a statement today.

Indian Bank has hiked its REPO benchmark rate by 25 bps from 6.25% to 6.50% and Revised Repo Based Lending Rate (RBLR) by 25 bps from 8.95% to 9.20%.

The MCLR rates of Indian Bank are effective as of 03.02.2023, following the revision the bank has hiked MCLRs by 15 bps from across tenors with overnight MCLR from 7.75% to 7.90%, from 7.90% to 7.90% on 1 month tenor, from 7.95% to 8.10% on 3 months tenor, from 8.20% to 8.35% on 6 months tenor and from 8.30% to 8.30% on 1 year tenor.

The other benchmark rates effective from 03.01.2023, the base rate w.e.f 03.01.2023 is at 9.10% and BPLR w.e.f 03.01.2023 is at 13.35% of Indian Bank.

Indian Bank's operating profit was 4061 Cr in Q3FY23 compared to 3288 Cr in Q3FY22, reflecting a jump of 24% YoY. Net profit increased by 102% YoY to 1396 Cr in Dec'22 from 690 Cr in Dec'21. The bank's domestic NIM grew to 3.74% in Q3FY23 from 3.03% in the same quarter last year, while its net interest income climbed by 25% YoY to 5499 Cr in Dec'22 from 4395 Cr in Dec'21. 

The cost-to-income ratio for Indian Bank was 43.71% in the quarter ended December 2022 compared to 44.75% in the quarter ended December 2021, and return on assets (RoA) increased to 0.80% in the third quarter of FY23 from 0.43% in the third quarter of FY22. The bank's Return on Equity (RoE) increased to 15.21% in Q3FY23 as against 8.26% in Q3FY22 whereas its advances increased by 13% YoY to 451658 Cr from 400432 Cr in Dec'21. 

Indian Bank said that in Q3FY23, its deposit rose by 6% YoY and reached 597114 Cr, while the CASA ratio was 40.4%. The bank's GNPA fell by 260 bps YoY to 6.53% in Q3FY23 from 9.13% in the year-ago quarter and NNPA fell by 172 bps to 1% from 2.72% in Q3FY22.

The bank's net business increased by 9% year on year, rising to 1048772 Cr in Q3FY23 compared to 963007 Cr in Q3FY22. In the quarter concluded in December 2022, CASA deposits increased by 3% year on year and totaled 241213 Cr. The bank records 5770 domestic branches, of which 1959 are in rural areas, 1509 are in semi-urban areas, 1161 are in urban areas, and 1141 are in metro areas in Q3FY23.

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