Karur Vysya Bank hikes lending rates, EMIs to go up

0
43

[ad_1]

Tamil Nadu-backed Karur Vysya Bank has increased the marginal cost of funds-based lending rates (MCLR) by 25 basis points across tenures. The new lending rates will come into effect on December 7, 2022. With the latest hike in MCLR, EMIs on various term loans at Karur Vysya Bank is likely to go up.

As per the regulatory filing, Karur Vysya Bank’s 1-year MCLR will be 9.05% from December 7 compared to the current rate of 8.80%. While the six-month MCLR will be at 8.95% from the current 8.70%.

Karur Vysya Bank’s three-month MCLR will be at 8.60% compared to the current 8.35%. Further, the one-month MCLR will be at 8.45% from the present 8.20%. The overnight MCLR will be set at 8.30% from the current 8.05%.

MCLR is the benchmark lending rate below which a bank is not permitted to lend.

In Q2FY23, the bank’s credit portfolio increased by 15% yoy to 7,996 crore. While gross advances stood at 61,846 crore by end of the September 2022 quarter — up from 53,850 crore in the same quarter last year. It needs to be noted that the bank’s credit offtake continues to improve both on a year-on-year and quarter-on-quarter basis aiding the growth of advances portfolio.

On Monday, Karur Vysya Bank’s shares closed at 99.50 apiece up by 0.40% on BSE. The stock had crossed the 100 mark to touch an intraday high of 101.20 apiece.

Karur Vysya shares were closer to their 52-week high of 106.00 apiece.

The bank’s market cap is over 7,961 crore.

Home loans, personal loans, auto loans, and education loans that are linked with MCLR will witness the revised rates. However, not all borrowers will face the brunt of the MCLR hike as banks have linked the majority of their loans with the policy repo rate.

The hike in MCLR comes a day ahead of RBI’s monetary policy outcomes where expectations of between 25 basis points to 35 basis points is on cards instead of a 50 basis points hike. Majority of banks have been increasing their benchmark lending rates since May this year in line with RBI’s rate hikes.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

[ad_2]

Source link