ICICI Bank hikes lending rates by 0.5%

ICICI Bank hikes lending rates by 0.5%

Mumbai: A day after mortgage lender, Housing Development Finance Corporation Ltd (HDFC) hiked its lending rates citing market conditions, India’s second largest private sector lender, ICICI Bank Ltd, on Saturday increased its lending rates by 0.5% from 6 December. The bank also hiked its deposit rates by across various tenures by 0.25% to 0.5%.

ICICI Bank hiked its benchmark prime lending rates and Floating Reference rate for consumer loans, including home loans, by 0.5% the bank said in a statement today.

Customers, who have fixed rate loans, will not be impacted by the increase, the bank said.

On Friday, HDFC hiked its lending rates by 0.75% citing rising interest rates in the economy and shrinking liquidity in the system.

HDFC hiked its retail prime lending rate (RPLR) by 0.75% with effect from 1 December. RPLR is the rate to which its floating rate loans are linked.

Following the hike, for new home loan customers the floating rate loans will now be priced 9.5% per annum for loans up to Rs30 lakhs, 9.75% for loans up to Rs75 lakhs and 10% for loans above Rs75 lakhs, the bank said.