Karur Vysya Bank Revises One-Year MCLR to 9.40% Effective Aug 22

KARUR, India — Karur Vysya Bank announced on Thursday, August 20, 2026, that it has revised its Marginal Cost of Funds Based Lending Rates (MCLR) across multiple tenors, raising its benchmark one-year MCLR to 9.40% from 9.35%. The private sector lender confirmed in regulatory filings that the adjusted borrowing rates will take effect on Saturday, August 22, 2026.

Detailed Breakdown of Revised MCLR Tenors

The interest rate revision impacts all short-term and medium-term benchmark lending tenors at Karur Vysya Bank. Under the updated structure, short-term borrowing costs will see increases ranging from 5 to 25 basis points.

The overnight MCLR has been adjusted upward by 15 basis points to 9.00%, compared to the previous rate of 8.85%. The one-month MCLR saw the largest increase, rising by 25 basis points to 9.00% from 8.75%. Medium-term tenors, including the three-month and six-month rates, were increased to 9.15% and 9.30%, respectively.

Impact on Borrowers and Business Loans

The one-year MCLR serves as a primary benchmark for consumer credit, personal loans, vehicle financing, and small enterprise loans offered by the bank. Retail borrowers whose existing loans are directly linked to the one-year MCLR tenor will see their applicable interest rates adjust upward during their next scheduled rate reset date.

For commercial enterprises and working capital borrowers, changes in short-term benchmark rates like the overnight and three-month MCLRs reflect shifting underlying funding costs across the commercial banking sector. Borrowers seeking new credit facilities from August 22, 2026, onward will have their floating-rate loans priced against the revised benchmark schedule.

Regulatory Disclosure and Compliance Filings

The rate revision disclosure was officially issued under Reference IRC: F48: 126: 271: 2026 by Srinivasarao Maddirala, Company Secretary and Compliance Officer at Karur Vysya Bank.

The regulatory notification was submitted to the listing departments of both the National Stock Exchange of India Limited (Scrip Code: KARURVYSYA) and BSE Limited (Scrip Code: 590003) on August 20, 2026. The notification complies with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Official Sources Section

According to official filings submitted by Srinivasarao Maddirala, Company Secretary and Compliance Officer of Karur Vysya Bank, to the listing desks of BSE Limited and the National Stock Exchange of India Limited, the bank's revised Marginal Cost of Funds Based Lending Rates will officially take effect on August 22, 2026.

Quote Section

According to official corporate filings submitted to Indian stock exchanges:

"Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, we advise that Marginal Cost of Funds Based Lending Rates (MCLR) of the Bank would be revised with effect from 22nd August 2026."

Why It Matters

The adjustment of the one-year MCLR to 9.40% directly affects monthly loan repayments for existing and prospective retail and commercial borrowers at Karur Vysya Bank. Upward revisions in benchmark lending rates reflect current liquidity conditions and deposit pricing pressures across domestic commercial banks, influencing borrowing costs for consumers and businesses alike.

Key Facts at a Glance

• One-Year MCLR: Revised upward to 9.40% from 9.35% (a 5 bps increase).

• Effective Date: New benchmark rates take effect starting August 22, 2026.

• Largest Rate Adjustment: One-month MCLR increased by 25 basis points to 9.00%.

• Regulator Filing: Disclosed pursuant to SEBI Regulation 30 listing obligations.

• Issuing Entity: The Karur Vysya Bank Limited, Karur, Tamil Nadu.

FAQ Section

1. What is the new one-year MCLR for Karur Vysya Bank?

   The new one-year MCLR is set at 9.40%, up from the previous rate of 9.35%.

2. When do the revised MCLR rates take effect?

   The revised lending rates take effect starting Saturday, August 22, 2026.

3. How will this rate revision affect existing loan customers?

   Existing floating-rate loans linked to the one-year MCLR will experience an interest rate adjustment on their next scheduled annual reset date.

4. What were the changes made to short-term MCLR tenors?

   Overnight MCLR rose to 9.00%, one-month to 9.00%, three-month to 9.15%, and six-month to 9.30%.

5. Which authority received the official rate revision disclosure?

   The regulatory notification was submitted to the listing departments of NSE and BSE.

Source: Official SEBI Regulation 30 Filing to NSE and BSE by Karur Vysya Bank