Karur Vysya Bank CEO Expects RBI to Hold Interest Rates Steady!

Karur Vysya Bank Managing Director and CEO B. Ramesh Babu stated that the Reserve Bank of India may not increase key interest rates immediately despite ongoing economic uncertainty. In an interview, he said rising inflation and higher fuel prices could affect consumer spending power, and any hike in lending rates may slow demand in sectors such as FMCG, ultimately impacting the country’s economic growth.

Ramesh Babu also highlighted strong demand for gold loans over the coming year, noting that banks are focusing more on secure lending options amid global uncertainties. He said the bank recorded a historic annual profit of ₹2,510 crore in FY 2025-26 while significantly reducing net NPAs to 0.19 percent. The bank is also planning to open more than 20 new branches across Andhra Pradesh and Telangana, mainly focusing on MSMEs, farmers, and small depositors.