Karur Vysya Bank
| Photo Credit:
BIJOY GHOSH
With the declining cost of deposits, Karur Vysya Bank has cut its Marginal Cost of Funds Based Lending Rates (MCLR) across the board by 25 basis points, with effect from November 22, 2025 .
Following the cut, the overnight MCLR is at 8.90 per cent (9.15 per cent earlier); the one-month and three-month MCLR are at 9.05 per cent (9.30 per cent); and the six-month and one-year MCLR are at 9.20 per cent (9.45 per cent).
Loans such as gold loans, loan against property, Kisan Credit Card loans, and loans given to non-MSME (corporate) borrowers are linked to MCLR.
The Bank’s cost of deposits came down from 5.77 per cent in the first quarter (Q1FY26) to 5.60 per cent in the second quarter (Q2FY26).
According to the RBI, public sector banks still have a significant proportion of their loans linked to marginal cost of funds-based lending rates. On the other hand, private banks extend a large part of their loans at external benchmark-based lending rates.
In its latest monetary policy report, the central bank noted that the marginal cost of funds-based lending rates and other legacy rates – based on internal benchmarks and having longer reset periods – act as an impediment to faster policy transmission.
Published on November 22, 2025
