ICICI bank cuts FRR, I-BAR by 0.5 per cent
04 Jun 2009
India's largest private sector lender ICICI Bank on Thursday slashed its benchmark floating reference rate by 50 basis points or 0.50 per cent. This is applicable to floating rate retail loans including home loans with effect from 5 June. The move would benefit the bank's home, auto, consumer and corporate borrowers.
The revised FRR will be 12.75 per cent as against 13.25 per cent at present. All the existing floating rate retail loan customers will benefit from the reduction in FRR.
ICICI Bank has also announced a reduction of 0.50 per cent in its benchmark advance rate with effect from 5 June. The revised I-BAR will be 15.75 per cent as against 16.25 per cent at present.
ICICI Bank had cut its lending rates by 50 bps and deposit rates by 25-50 bps on 21 April following a cut in policy rates by the Reserve Bank of India. Subsequently, ICICI Bank further pared its deposit rates by 25-50 basis points on deposits of various maturities with effect from 11 May.