Business

Karur Vysya Bank raises lending rates, EMI increases


Tamil Nadu-backed Karur Vysya Bank raised the marginal cost of its fund-based lending rate (MCLR) by 25 basis points over its tenures. The new lending rates will come into effect on December 7, 2022. With the most recent MCLR increase, the EMI for loans of different maturities at Karur Vysya Bank is likely to increase.

According to regulatory filings, Karur Vysya Bank’s 1-year MCLR will be 9.05% as of December 7 from the current rate of 8.80%. While six months MCLR will be at 8.95% from the current 8.70%.

Karur Vysya Bank’s three-month MCLR will be at 8.60% versus 8.35% currently. Furthermore, one-month MCLR will be at 8.45% from the current 8.20%. Overnight MCLR will be set at 8.30% from the current 8.05%.

MCLR is the benchmark loan interest rates below the level that banks are not allowed to lend.

In Q2FY23, the bank’s credit portfolio increased by 15% year-on-year $7,996 cores. While advance payments stood at $61,846 crore at end of September 2022 — up from $53,850 crore in the same quarter last year. It should be noted that the bank’s credit extension continued to improve both year-on-year and quarterly, helping to grow the advance portfolio.

On Monday, shares of Karur Vysya Bank closed at $99.50 each is up 0.40% on BSE. Stocks that have passed $100 points to hit the high of the day $101.20 per person.

Karur Vysya shares close to 52-week high of $106.00 each.

The bank’s market capitalization has run out $7,961 cores.

Home loans, personal loans, auto loans, and education loans linked to MCLR will see revised interest rates. However, not all borrowers will face the brunt of the MCLR increase as banks have linked the majority of their loans to the policy repo rate.

The MCLR increase comes a day ahead of the RBI’s monetary policy results, where an expectation of 25 basis points to 35 basis points is appropriate rather than a 50 basis point increase. Most banks have raised their benchmark lending rates since May this year to match the RBI’s rate hikes.

catch them all Business newsletter, Market News, Hot news Events and Latest news Update on Live Mint. Download Mint . News Application to get Daily Market Updates.

Than
Less than

news5s

News5s: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button