Karur Vysya Bank Slashes MCLR Rates by 25 Basis Points Across All Tenors
Karur Vysya Bank has reduced its Marginal Cost of Funds Based Lending Rates (MCLR) by 25 basis points across all tenors, effective November 22, 2025. The overnight MCLR is now 8.90%, while one-month and three-month rates are 9.05%. Six-month and one-year MCLR rates have been lowered to 9.20%. This reduction is expected to benefit both existing and new borrowers, potentially leading to lower interest payments on loans. The move may influence the competitive landscape in the banking sector and could have broader implications for the credit market.
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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.
Historical Stock Returns for Karur Vysya Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.33% | +2.64% | +3.30% | +22.87% | +39.05% | +587.70% |
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