-
ALSO READ
ICICI Bank cuts lending rates by 10 bps weeks after slashing deposit rates
Canara Bank cuts lending rates by 10 basis points across all tenors
ICICI Lombard hits new high; stock surges 7%
ICICI Bank gains 5% in weak market after posting Rs 1,980 cr profit in Q1
Oriental Bank of Commerce reduces one-year MCLR by 5 bps to 8.70%
-
The second largest private sector lender ICICI Bank has cut its lending rates by 0.10 percent across all maturities, sources said on Wednesday.
The rates have been cut across all tenors under the marginal cost of funds- based lending rate (MCLR) system, they said.
With this cut, which comes amid repeated RBI nudges to slash rates, the total quantum of rate reduction by the bank since April goes to 0.20 percent.
Under the revised rates, effective September 1, the bank's one-year MCLR will come down to 8.55 percent, while the overnight MCLR will be 8.30 percent.
The one-year MCLR is considered important from a retail loans perspective, as all of a bank's long-term loans like home loans, are linked to this rate.
Its larger rival HDFC Bank's one-year MCLR stands at 8.60 percent as of now, while the same for third largest private sector lender Axis Bank is at 8.55 percent.
ICICI Bank had last reviewed its interest rates in the first week of July, when it effected a 0.05 percent reduction.
It can be noted that the RBI has been disappointed with banks for not passing on the lower rates to borrowers, despite its four successive rate cuts of 1.10 percent in 2019 and 0.85 per cent since April.
According to RBI, banks have passed on only under 0.30 percent benefits to borrowers till August as against 0.75 percent of its cuts. Banks say it takes time for its liabilities to get re-priced which results in the delay in the transmission of RBI's moves.
The RBI has suggested linking of loan rates to external benchmarks like its repo rate as an alternative to take care of its concerns. The state-run lenders have responded to this call, but the private sector ones are yet to move.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor






RECOMMENDED FOR YOU