ICICI Bank cuts lending and deposit rates by up to 50 bps

Soon after the RBI reduced policy rates by 25 basis points, the country's largest private sector lender, ICICI Bank, today slashed the benchmark lending rate by 50 basis points, a move that would benefit millions of home, consumer and corporate loan borrowers.

The benchmark advance rate will be reduced by 50 basis points to 16.25 per cent with effect from tomorrow, ICICI Bank said in a statement.

At the same time, the bank also decided to reduce deposit rates by 25-50 basis points across various tenors. The new fixed deposit rates would be effective from April 24, it said.

Meanwhile, the RBI today reduced the short-term lending (repo) and borrowing (reverse repo) rate by 25 basis points each to 4.75 per cent 3.25 per cent, respectively, with immediate effect.

ICICI Bank has also reduced the floating reference rate by half a percentage point to 13.25 per cent.

All the existing floating rate customers will benefit from the cut, the statement added.

ICICI Bank last reduced its lending and deposit rates effective December 31, 2008.

The Benchmark Advance Rate was reduced by 0.5 percentage points to 16.75 per cent.

The floating reference rate was slashed, and the home loan rate was reduced to 13.5 per cent while deposit rates were reduced by 50-75 basis points across various tenors.

Meanwhile, other banks including SBI also hinted at revision in both lending and deposit rates in the coming days.

"It (the RBI rate cuts) is a very clear-cut signal that interest rates should ease," SBI Chairman O P Bhatt told reporters after meeting RBI Governor D Subbarao.

At the same time, UCO Bank CMD S K Goel said "as far as my bank (UCO Bank) is concerned, we are going to reduce our BPLR by 0.25 per cent." The Kolkata-based bank will be holding its board meeting in the next 10-15 days and a decision on a rate cut would be taken then, he said.