Karur Vysya Bank revises MCLR rates with effect from today

Private lender Karur Vysya Bank has revised marginal cost of funds based lending rates (MCLR) with effect from October 7, 2021. The Bank has revised overnight MCLR to 7.40 per cent from the existing 7.50 per cent, while the one-month MCLR has been revised to 7.55 per cent from 7.65 per cent.

The three-month MCLR has been revised to 7.70 per cent from 7.80 per cent, while the six-month MCLR has been revised to 8.05 per cent from 8.15 per cent. The one-year MCLR now stands at 8.15 per cent from 8.25 per cent.

MCLR is the minimum lending rate below which a bank is not permitted to lend. Banks use MCLR to assess the risk factors for loans they give and also adjust their interest rates as soon as the repo rate changes. The implementation aims at improving the openness in the structure followed by the banks to calculate the interest rate on advances.

The Bank reported a strong business update in the September quarter as its total business grew 6.93 per cent to Rs 1,19,261 crore (provisional). It was Rs 1,11,530 crore in the same quarter last year (Q2 FY21).

The bank said its total deposits grew 7.02 per cent to Rs 65,410 crore in Q2FY22 over Q2FY21. Meanwhile, total advances stood at Rs 53,851 crore in Q2FY22, up 6.83 per cent over the same period last year.

Ace investor Rakesh Jhunjhunwala holds 3,59,83,516 shares of the private lender, which is around 4.5 per cent of the net company's stock.