Bank of India targets 35% share in MCLR-linked credit in next 2-3 years

Prudent growth forecast for FY26: 12-13%

With the interest rate cut cycle around the corner, Bank of India (BoI) is tweaking its lending strategy to enhance the share of the marginal cost of funds-based lending rate (MCLR)-linked loans from about 29 per cent now to 35 per cent in the next two to three years.

 

Rajneesh Karnatak, managing director and chief executive of BoI, told Business Standard that earnings from external benchmark-linked rate (EBLR) loans to retail and micro, small and medium enterprises (MSMEs) will be impacted and may also dent net interest margins (NIM) when the policy repo rate is cut.

 

For the Mumbai-based lender,