Karur Vysya Bank Announces Revision in Lending Rates

Karur Vysya Bank (NSE: KARURVYSYA, BSE: 590003) has announced a revision in its Marginal Cost of Funds Based Lending Rates (MCLR). These adjustments, approved in alignment with the current financial environment, are scheduled to take effect from April 22, 2026.

The bank has implemented a consistent increase of 5 basis points (0.05%) across all tenor categories, reflecting a marginal rise in the cost of managing and sourcing funds.

Revised Lending Rate Structure

Under the new schedule, the Overnight MCLR will increase from 8.80% to 8.85%. For short-term borrowing, both the One-month and Three-month MCLR have been adjusted upward from 8.95% to 9.00%.

The rates for longer durations have seen similar adjustments. Both the Six-month and One-year MCLR-the latter often serving as a benchmark for home and personal loans-will move from 9.10% to 9.15%.

The MCLR serves as the internal reference rate for a significant portion of the bank's loan portfolio. This upward revision typically leads to a slight increase in interest costs for various types of credit:

Retail Loans: Borrowers with floating-rate home, auto, or personal loans linked to the MCLR will likely see a marginal increase in their Monthly Instalments (EMIs) or an extension of their loan tenure upon the next reset date.

Commercial Credit: Business loans and working capital facilities priced against these benchmarks will become slightly more expensive, reflecting the broader trend of tightening liquidity in the banking sector.

While the 5-basis-point hike is modest, it highlights Karur Vysya Bank's proactive approach to maintaining its net interest margins (NIMs) amid evolving market conditions.

Shares of Karur Vysya Bank Limited was last trading in BSE at Rs. 277.65 as compared to the previous close of Rs. 280.55. The total number of shares traded during the day was 90672 in over 3367 trades.

The stock hit an intraday high of Rs. 283.85 and intraday low of 275.50. The net turnover during the day was Rs. 25260086.00.

Source : Equity Bulls

Keywords

KarurVysyaBank INE036D01028 KVB LendingRates MCLR Revision