ICICI Bank raises lending rate by 50 bps

ICICI Bank today raised its benchmark prime lending rate (PLR) by 50 basis points to 16.25 per cent, making home, auto and corporate loans costlier.

The revised rate will rate will be effective from August 18, 2010, ICICI Bank said in a statement.

It has also increased by 50 basis points its Floating Reference Rate (FRR) for consumer loans (including home loans).

The revised FRR will be 13.25 per cent as against 12.75 per cent at present.

Earlier in the day, public sector State Bank of India hiked its lending rates by 50 basis points and deposit rates by 150 basis points.

PLR and FRR were used for determining interest rates on loans and advances up to June 30, 2010, ICICI Bank said. With effect from July 1, 2010, interest rate on new loans and advances, including consumer loans. Is determined with reference to ICICI Bank Base Rate (I-Base), it said.

The private lender clarified that the fixed rate customers will not be impacted by the above increase and their contracted rates will remain unchanged.

I-Base has been maintained at 7.5 per cent yearly. The bank will also continue with its current dual rate home loan scheme at existing rates, it added.