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Shares of Karur Vysya Bank jumped by over four per cent to hit 52-week high of Rs 74.55 per share in BSE intraday trade on Thursday. The spike in bank stock price came a day after Karur Vysya raised Marginal Cost of fund based Lending Rate (MCLR) on Wednesday.
The bank raised Overnight MCLR from existing 7.60% to 7.75% effective September 7, 2022.
Meanwhile, the bank also raised the base rate and BPLR (Benchmark Prime Lending Rate). Karur Vysya Bank announced to increase base rate from 8.75% to 9.20% and BPLR from 13.75% to 14.20%. These rates will come into effect from Friday, September 9. Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers.
Benchmark rate means the reference rate used to determine the interest rates on loans. BPLR is influenced by the Repo rate and Cash Reserve Ratio (CRR). BPLR is the rate which commercial banks charge their customers who are most credit worthy. The banks can fix the BPLR with the approval of their Boards, as per the Reserve Bank of India (RBI).
As on September 8, shares of Karur Vysya Bank have generated a healthy return of over 70% in the past one year. On Thursday, around 2pm, the stock was trading higher by three per cent to Rs 73.65 per share
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