Karur Vysya Bank (NSE: KARU.NS) has announced a revision in its Marginal Cost of Funds Based Lending Rate (MCLR), lowering the one-year MCLR to 9.10% from 9.20%, effective February 22, 2026. The move reflects easing cost of funds and is expected to benefit borrowers across retail and corporate segments.
Key Highlights
Rate Revision: Karur Vysya Bank (KVB) has reduced its one-year MCLR by 10 basis points, bringing it down to 9.10% from 9.20%, effective February 22, 2026.
Broader Adjustments: The bank confirmed that benchmark rates across multiple tenors have been revised downward, aligning with market conditions and regulatory requirements.
Impact on Borrowers: The one-year MCLR serves as the benchmark for most retail loans, including home loans, auto loans, and SME credit facilities. The reduction is expected to lower borrowing costs for new customers and those with floating-rate loans linked to MCLR.
Market Context: The revision reflects a general downward trend in the cost of funds, with banks adjusting lending rates to remain competitive amid easing liquidity conditions.
Corporate Statement: KVB emphasized that the changes are part of its regular review cycle, ensuring lending rates remain aligned with economic indicators and RBI guidelines.
Investor Sentiment: Analysts note that while the cut is modest, it signals positive momentum for borrowers and could support credit growth in the coming quarters.
Contextual Insights
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The move highlights how mid-sized private banks are leveraging rate adjustments to attract borrowers in a competitive lending environment.
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Borrowers with floating-rate loans should monitor their EMI schedules, as the revision may reduce monthly payments.
Sources: InvestyWise, Karur Vysya Bank Official Filingkvb.bank.in, Economic Times