Karnataka Bank Ltd.

Press Release

KARNATAKA BANK REVISES ITS BASE RATE

Keeping in view the present market conditions Mangalore-based private sector bank Karnataka Bank Limited has revised its Prime Lending Rate (PLR) by 25 basis points across the board for all categories of loans presently linked to PLR. With this, PLR of the Bank is 15.75% p.a. This upward revision in PLR is effective from 3^rd August 2011.

Taking into account the hardening interest rate scenario the Bank also raised its Base Rate (BR) to 11.00% p.a. from the existing 10.50% p.a. This new rate is applicable with effect from 3^rd August, 2011.