Mumbai: ICICI Bank Ltd, India’s largest private lender, on Thursday increased its lending rate by quarter of a percentage point to 10%.
This follows rivals HDFC Bank Ltd and Axis Bank Ltd, which increased their lending rates in recent weeks after the Reserve Bank of India (RBI) effectively hiked the short-term rates in the banking system through a slew of measures to support the weak rupee.
ICICI Bank’s hike in the base rate, or its minimum lending rate, to 10% from 9.75% earlier, will be effective from Friday. The hike will impact all loans linked to the base rate. ICICI has also hiked its benchmark prime lending rate and its floating reference rate for consumer loans from tomorrow, the bank said in a release to stock exchanges.
On Monday, Axis Bank raised its base rate by 25 basis points to 10.25%. Yes Bank too had raised its base rate recently. One basis point is one-hundredth of a percentage point.