ICICI cuts base rate by 5 bps to 9.70pc

ICICI cuts base rate by 5 bps to 9.70pc

ICICI cuts base rate by 5 bps to 9.70pc

Largest private sector lender ICICI Bank today marginally reduced its base rate to 9.70 per cent from 9.75 per cent earlier, making its lending rate at par with industry leader SBI and that of HDFC Bank.

"The revised rate, effective tomorrow, will be 9.70 per cent per annum as against 9.75 per cent at present with effect," the bank said in an exchange filing.

This is the second base rate reduction by the bank since April this year. In April, it had slashed base rate by 0.25 per cent to 9.75 per cent.

SBI was the first of the block to reduce its base rate earlier this month after RBI Governor Raghuram Rajan in the June 2 monetary policy statement urged banks to pass through the sequence of rate cuts into lending rates.

SBI had reduced its base rate by 15 basis points to 9.70 per cent. The second largest private sector lender HDFC Bank followed suit last week by slashing its base rate by 0.15 per cent to 9.70 per cent.

Post the June 2 policy mid-sized state-owned Allahabad Bank also cut its base rate by 0.3 per cent to 9.95 per cent from 10.25 per cent.

Meawhile, another private sector lender Kotak Mahindra Bank also today hinted at a base rate cut.

Talking to reporters on the sidelines of an industry event in the city, Kotak Bank chief Uday Kotak said he sees the lending rates coming down. Kotak however, did not offer any details.

He also expected the RBI to cut rates more if the monsoon keeps its momentum going forward. 

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