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  4. ICICI Bank raises lending rate by 15 bps

ICICI Bank raises lending rate by 15 bps

The rate hike comes ahead of the RBI's Monetary Policy Committee (MPC) meeting later this week. It is widely expected that the MPC would hike interest rates to tame high inflation.

PTI Reported By: PTI New Delhi Updated on: August 01, 2022 14:59 IST
icici bank, icici corporate, icici, rbi bank, rbi, lending rate, inflation, rate hike, hdfc, msme
Image Source : PTI/FILE ICICI Bank on Monday raised its lending rates by 0.15 per cent across all tenors in anticipation of a rate hike by the RBI later this week.

Highlights

  • ICICI Bank on Monday raised its lending rates by 0.15 percent across all tenors
  • This will make EMI expensive for those who availed loans benchmarked against MCLR
  • The rate hike comes ahead of the RBI's Monetary Policy Committee (MPC) meeting later this week

ICICI Bank, the second-largest private sector lender, on Monday raised its lending rates by 0.15 percent across all tenors in anticipation of a rate hike by the RBI later this week.

The rates have been increased across all tenors under the marginal cost of funds-based lending rate (MCLR) system, a move that will make EMI expensive for those who availed loans benchmarked against MCLR.

Under the revised rates, effective August 1, the bank’s one-year MCLR increased by 15 basis points or 0.15 percent to 7.90 percent, while the overnight MCLR rose to 7.65 percent, as per information posted on the bank's website. The one-year MCLR is considered important from a retail loans perspective, as a bank’s long-term loans like home loans are linked to this rate.

The rate hike comes ahead of the RBI's Monetary Policy Committee (MPC) meeting later this week. It is widely expected that the MPC would hike interest rates to tame high inflation.

Last week, mortgage lender HDFC increased its lending rate by 0.25 percent. Indiabulls Housing Finance Ltd (IBHFL) also hiked its reference rates on housing loans and MSME loans by 25 basis points in line with other players.

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The new rates will be applicable for new customers from August 1 and for existing borrowers from August 5 onwards.

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