ICICI Bank ups corporate lending rate by 50 bps

ICICI Bank today hiked its corporate lending rate for the second time in 40 days. The country's second largest bank raised its prime lending rate, called ICICI Bank benchmark advance rate (I-BAR), by 50 basis points to 11.75 per cent with effect from February 13.

Kotak Mahindra Bank too hiked its PLR for retail loans (I-PLR) by 50 basis points from 10.5 per cent to 11 per cent.

Its minimum home loan rate will now be 8 per cent, up from 7.5 per cent. The bank had last month hiked its PLR for corporate loans by 25 basis points from 13.75 to 14 per cent.

ICICI Bank had raised I-BAR by 25 basis points to 11.25 per cent with effect from January 3. One basis point is one hundredth of a percentage point.

The increases in the benchmark rate means a 75 basis points increase in cost of funds for existing medium and large borrowers.

The bank earlier this month increased its home loan rates by 50 basis points across the board. The increase for existing customers will come into effect from April 1.

The bank has raised its home loan PLR by 50 basis points to 9.25 per cent.

The PLR of major public sector banks range from 10.25 per cent to 10.75 per cent. HDFC Bank's BPLR is currently 11 per cent, which was last revised in January 2004.

ICICI Bank had earlier raised its I-BAR by 50 basis points to 11 per cent on February 9, 2005 and by an identical level on November 17, 2004.

Almost all banks have raised interest rates offered on deposits by 50 to 100 basis points.