KVKarur Vysya Bank590003Banking

Karur Vysya Bank management discussed how rising rates benefit margins given high EBLR-linked loan book, and addressed gold loan and textile exposure

By ScoutQuest · Fri 16 Oct 2026, 11:08 AM IST · 1 min read

Share of book EBLR-linked

57 percent of the book

Working capital repricing share

1/3 of book

Margin guidance

4 percent

Earlier margin guidance

3.8 to 3.9 percent

Current reported margin

4.26 to 4.3 percent

Heard on business television between 11:17:57 - 11:20:57 IST.

• Said 57% of the loan book is EBLR-linked, with working capital (about 1/3) repricing immediately and the rest repricing as term loans mature.
• Said rising rates help the bank because superannuation benefit provisioning requirement falls when rates rise, benefiting costs.
• Said margin guidance of 4% is a conservative estimate, up from earlier guidance of 3.8-3.9%, due to competitive pressure from banks flush with FCNR funds potentially forcing lower rates to retain customers.
• Said the next three to six months are a crucial period with margins as the key focus, with possible compromise on some customer margins.
• Discussion continued on gold loan portfolio (29% of advances) and textile business exposure to trade uncertainties.

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