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UCO Bank lifts UCO Float to 8.30% and UCO Prime to 5.50%; eighth listed lender to pass on RBI’s 25 bp hike
A day after seven banks told the exchanges they had raised repo-linked lending rates by 25 basis points, UCO Bank filed its own revision. UCO Float is now 8.30% and UCO Prime 5.50%, both up a quarter point from 8 October. MCLR is unchanged. India’s largest lenders have still not posted an NSE rate change.
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UCO Bank — Update on Benchmark Rates, filed with NSE/BSE on 8 Oct 2026 (effective same day):
| Benchmark | Existing | New (w.e.f. 8 Oct) |
|---|---|---|
| Repo Linked — UCO Float | 8.05% | 8.30% |
| Repo Linked — UCO Prime | 5.25% | 5.50% |
| TBLR (3 month) | 5.25% | 5.30% |
| TBLR (6 month) | 5.55% | 5.70% |
| TBLR (12 month) | 5.70% | 5.95% |
| UCO G-Sec (1 year) | 5.88% | 6.26% |
| 10-year G-Sec YTM (par) | 7.09% | 7.32% |
| MCLR (overnight → 1 year) | 7.90%–8.80% | unchanged |
| Base rate / BPLR | 9.60% / 14.25% | unchanged |
That makes eight listed banks with a disclosed +25 bp repo-linked move after Wednesday’s RBI hike (the prior seven: PNB, Bank of Baroda, Bank of India, Indian Bank, IOB, Karur Vysya, TMB — Thursday Brief story).
Still no NSE lending-rate change filing (as of late Thu 8 Oct): State Bank of India, HDFC Bank, ICICI Bank, Canara Bank, Union Bank of India, Axis Bank.
Takeaway: another public-sector lender has matched the repo move on floating retail benchmarks; big private and SBI filings are the next watch. Not investment advice.
Analysis
What moved and what did not
UCO’s Asset Liability Management Committee raised every repo-linked, TBLR, and G-Sec-linked benchmark it listed, while freezing MCLR, base rate, and BPLR. That pattern matches several of Wednesday’s filers: pass through on external benchmarks now, leave cost-of-funds MCLR for a later review.
RBI’s 2019 external-benchmark rule requires new floating retail and MSE loans to reset at least once every three months, so borrowers on UCO Float / UCO Prime see the quarter-point at their next reset (RBI circular).
Pass-through scoreboard (NSE filings)
Eight banks have now disclosed a +25 bp repo-linked revision effective 7–8 Oct. The largest balance-sheet names — SBI, HDFC Bank, ICICI Bank — had not posted an equivalent NSE rate intimation as of late Thursday in Capital Chronicle's check of NSE announcements. Banks also publish benchmark rates on their own websites, so the absence of an NSE filing does not by itself mean no change.
What to watch
- SBI / HDFC Bank / ICICI Bank EBLR or RLLR filings
- Any MCLR cycle at month-end reviews
- Fixed-deposit rate changes as liquidity is drained via VRRR
- September CPI on Mon 12 Oct
Not investment advice. No politics.
Sources
- UCO Bank — Update on Benchmark Rates of the Bank, filed 8 Oct 2026 — https://nsearchives.nseindia.com/corporate/UCOBANK_08102026102055_NSEBSEMCLR08102026.pdf
- NSE — Corporate announcements (UCOBANK) — https://www.nseindia.com/companies-listing/corporate-filings-announcements
- Reserve Bank of India — External Benchmark Based Lending, circular dated 4 Sep 2019 — https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11677
- Capital Chronicle: Seven banks lift repo-linked rates 25 bps
- Capital Chronicle: RBI MPC hikes repo 25 bps to 5.50%
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