Karur Vysya Bank will increase its key lending rates effective September 22, 2026. The bank is raising its Marginal Cost of Funds Based Lending Rates (MCLR) by 5 basis points across all tenors.
The Base Rate will rise by 20 basis points from 11.00% to 11.20%. The Benchmark Prime Lending Rate (BPLR) will also increase by 20 basis points to 16.20% from 16.00%. These adjustments will increase borrowing costs for the bank's customers.
The bank attributed the hike to current funding costs and market interest rate conditions. This move is expected to improve the bank's lending margins. Karur Vysya Bank's share price closed at ₹332.80 on September 18, 2026.