ICICI Bank cuts lending rates by 10 bps: report
1 min read . Updated: 04 Sep 2019, 07:01 PM IST- After the rate cut, one-year MCLR will fall to 8.55% and the overnight MCLR will drop at 8.30%
- Shares of ICICI Bank rises 1.36% at ₹397.50 on the BSE
NEW DELHI: : India’s second largest private lender ICICI Bank has reduced its lending rates by 10 basis points (bps) across all tenors, a report by news agency PTI said on Wednesday.
The report said the lending rates have been cut under the marginal cost of funds-based lending rate (MCLR).
The one-year MCLR is the benchmark against which most retail loans such as home loan and auto loan are priced.
After the rate cut, which would be effective from 1 September, one-year MCLR will fall to 8.55% and the overnight MCLR will drop at 8.30%.
ICICI Bank had also cut its MCLR by 10 bps across all tenors in July this year.
One basis point is one-hundredth of a percentage point.
Compared to ICICI Bank’s new lending rate, India’s largest private lender HDFC Bank's one-year MCLR stands at 8.60% and the third largest private sector lender Axis Bank’s one-year MCLR is at 8.55%.
Owing to higher net interest income (NII) and lower provisions, ICICI Bank had recorded a standalone net profit at ₹1,908 crore in the first quarter of this fiscal, against a loss of ₹120 crore in the same period last fiscal year.
Shares of ICICI Bank on Wednesday closed at ₹397.50, 1.36% higher from its previous close, on the BSE.
