Karur Vysya Bank Slashes MCLR Rates by 25 Basis Points Across All Tenors

Karur Vysya Bank has announced a significant reduction in its Marginal Cost of Funds Based Lending Rates (MCLR), potentially making loans more affordable for borrowers. The bank has lowered its MCLR by 25 basis points across all tenors, effective from November 22, 2025.

Key Changes in MCLR Rates

Tenor	Existing Rate	Revised Rate	Change
Overnight	9.15%	8.90%	-0.25%
One-month	9.30%	9.05%	-0.25%
Three-month	9.30%	9.05%	-0.25%
Six-month	9.45%	9.20%	-0.25%
One-year	9.45%	9.20%	-0.25%

Impact on Borrowers

The reduction in MCLR rates is likely to benefit both existing and new borrowers of Karur Vysya Bank. For existing borrowers with loans linked to the MCLR, this change may result in lower interest payments on their loans. New borrowers may find the bank's lending products more attractive due to the reduced rates.

Significance of the Rate Cut

This move by Karur Vysya Bank comes at a time when the banking sector is closely watched for its lending practices and interest rate policies. The 25 basis point reduction across all tenors indicates a significant shift in the bank's cost of funds and could potentially impact its lending portfolio.

Market Implications

The decision to lower MCLR rates may influence the competitive landscape in the banking sector. Other banks might feel pressure to review their own lending rates to remain competitive in the market. This change could also have broader implications for the credit market and economic activities that rely on bank financing.

Investors and market analysts will likely be watching closely to see how this rate cut affects Karur Vysya Bank's loan growth and overall financial performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.39%	-1.01%	+0.91%	+30.88%	+38.13%	+668.01%

Karur Vysya Bank Limited has initiated a postal ballot process to seek shareholder approval for the appointment of Dr. Mythili Vutukuru as a Non-Executive Independent Director. The bank's Board of Directors, based on recommendations from the Nomination and Remuneration Committee, has proposed Dr. Vutukuru's appointment for a three-year term from September 24, 2025, to September 23, 2028.

Key Details of the Appointment

Item	Detail
Candidate	Dr. Mythili Vutukuru (DIN: 10371961)
Position	Non-Executive Independent Director
Term	Three years (September 24, 2025 to September 23, 2028)
Voting Period	November 21, 2025 to December 20, 2025

Dr. Vutukuru's Profile

Dr. Mythili Vutukuru brings significant expertise in Information Technology to Karur Vysya Bank's board:

Currently an Associate Professor in the Department of Computer Science and Engineering at IIT Bombay
Holds a Ph.D. in Electrical Engineering and Computer Science from MIT
Specializes in operating systems, computer networking, virtualization, and cloud computing
Member of the Standing Committee on Technology at NSE Clearing Limited since 2021

Voting Process

Shareholders can cast their votes through remote e-voting, which will be conducted from November 21, 2025 (10:00 A.M. IST) to December 20, 2025 (05:00 P.M. IST). The bank has engaged the services of National Securities Depository Limited (NSDL) for the e-voting process.

Regulatory Compliance

The appointment is subject to shareholder approval as per Regulation 17(1C) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank is required to obtain this approval within three months of the appointment or at the next general meeting, whichever is earlier.

Bank's Rationale

Karur Vysya Bank aims to enhance its board's expertise in Information Technology, aligning with the Banking Regulation Act, 1949's requirement for special knowledge or practical experience in bank boards. Dr. Vutukuru's appointment is expected to contribute to the bank's technological governance and strategic direction.

Shareholders are encouraged to review the detailed postal ballot notice and participate in the voting process to decide on this significant board appointment.