Kolkata: Karur Vysya Bank announced lowering of lending rates on Friday, a day after the country’s largest lender State Bank of India made loans costlier.
The private sector lender reduced its repo linked external benchmark rate by 15 basis points to 9.90%. The new rate will be effective from August 19, the bank said in a regulatory filing to stock exchanges.
The bank decided to lower the rate, even as the Reserve Bank of India last week said that the transmission in credit market in still on.
SBI raised its overnight and three-year marginal cost of funds based lending rates (MCLR) by 10 basis points. The decision, which was announced earlier, became effective from Thursday.
One basis point is equivalent to a hundredth of a percentage point.
RBI increased policy repo rate hike by a cumulative 250 bps since May 2022, while the weighted average lending rates on fresh and outstanding rupee loans of scheduled commercial banks have increased by 181 bps and 119 bps respectively.
Karur Vysya’s net interest margin for the June quarter stood at 4.13%, down 6 bps as compared to what it was in the year-ago period. The bank earned a net profit of Rs 459 crore for the first quarter of the current fiscal, reflecting a 28% year-on-year rise.
