Karur Vysya Bank increased loan rates, EMI may increase

As per the regulatory filing, Karur Vysya Bank’s 1-year MCLR will be 9.05% with effect from December 7, as against the current rate of 8.80%. while six months MCLR will be at 8.95% from the existing 8.70%.

The three month MCLR for Karur Vysya Bank will be 8.60% as against the current 8.35%. In addition, the one month MCLR will increase to 8.45% from the existing 8.20%. Overnight MCLR to be set at 8.30% from existing 8.05%.

MCLR is the benchmark Borrow The rate below which a bank is not allowed to lend.

In Q2FY23, the bank’s credit portfolio grew by 15% 7,996 crores. while the gross advance stood at 61,846 crore by the end of September 2022 quarter — above 53,850 crore in the same quarter last year. It needs to be noted that the bank’s credit offtake continues to improve both on a year-on-year and quarter-on-quarter basis, leading to growth in the advance portfolio.

Shares of Karur Vysya Bank on Monday 99.50 on the BSE, up 0.40%. stock was exceeded to touch an intraday high of 100 101.20 each.

Shares of Karur Vysya were near their 52-week high 106.00 each.

The market cap of the bank is over 7,961 crores.

Home loans, personal loans, auto loans and education loans that are linked to the MCLR will witness revised rates. However, not all borrowers will bear the brunt of the MCLR hike as banks have linked most of their loans to the policy repo rate.

The hike in MCLR comes a day ahead of the RBI’s monetary policy results, where expectations for a hike range from 25 basis points to 35 basis points, instead of 50 basis points. Most banks have been increasing their benchmark lending rates since May this year in line with the rate hike by the RBI.