Karur Vysya Bank , a prominent player in the Indian banking sector, has announced a reduction in its External Benchmark Rate-Repo linked (EBR-R) from 8.80% to 8.55%, effective December 06, 2025. This 25 basis point cut is expected to impact the bank's lending rates tied to the external benchmark.

Key Points of the Rate Revision

• Previous EBR-R: 8.80%
• New EBR-R: 8.55%
• Reduction: 25 basis points
• Effective Date: December 06, 2025

The bank communicated this change to stock exchanges in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This move aligns with the bank's strategy to adjust its lending rates in response to market conditions and regulatory frameworks.

Potential Impact on Borrowers

The reduction in EBR-R could potentially lead to lower interest rates on loans linked to this benchmark. Borrowers with floating rate loans tied to the EBR-R may see a decrease in their equated monthly installments (EMIs) or a reduction in their loan tenure, depending on the terms of their loan agreements.

Bank's Financial Position

To provide context on Karur Vysya Bank's financial standing, here's a snapshot of key balance sheet items:

The bank has shown growth across key financial metrics, with total assets increasing by 13.19% year-over-year. This solid financial foundation may have provided the bank with the flexibility to adjust its benchmark rates in response to market conditions.

Conclusion

Karur Vysya Bank's decision to reduce its EBR-R reflects the dynamic nature of the banking sector and its responsiveness to broader economic factors. As the new rate takes effect, both existing and potential borrowers may benefit from the revised lending rates linked to this benchmark. Stakeholders and market observers will likely monitor the impact of this rate change on the bank's loan portfolio and overall performance in the coming quarters.

Karur Vysya Bank (KVB) has announced a significant move in its executive compensation strategy. The bank's Nomination and Remuneration Committee has approved the granting of 52,017 stock options to B Ramesh Babu, the Managing Director & CEO, as part of his variable pay package for the fiscal year 2024-25.

Key Details of the Stock Option Grant

• Number of Options: 52,017
• Scheme: KVBESOPS 2018
• Price per Option: Rs. 247.03 (based on the closing price on 04.12.2025 at NSE)
• Purpose: Non-cash component of variable pay for FY 2024-25

Vesting Schedule

The stock options will vest over a three-year period, as follows:

Each option, upon vesting, will be convertible to one equity share of the bank. The vested options will be immediately credited to B Ramesh Babu's demat account on the respective vesting dates.

Compliance and Approval

This grant of stock options is in accordance with the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Moreover, the compensation structure for the MD & CEO has been approved by the Reserve Bank of India, ensuring regulatory compliance.

Financial Context

While this news primarily focuses on executive compensation, it's worth noting some key financial metrics of Karur Vysya Bank:

The bank has shown growth across these key areas, which provides context for the decision to grant stock options as part of the executive compensation package.

This move by Karur Vysya Bank aligns the interests of its top executive with those of the shareholders, potentially incentivizing long-term performance and value creation for the bank.