ICICI Bank home loan EMIs to fall as bank cuts MCLR rate1 min read . Updated: 03 Aug 2020, 11:09 AM IST
- Under the revised rates, effective 1 August, the bank's one-year MCLR will come down to 7.45%
- Last month ICICI Bank had revised interest rates on fixed deposits (FDs)
The second largest private sector lender ICICI Bank has cut its lending rates by 10 basis points (bps) across all tenors. The rates have been cut across all tenors under the marginal cost of funds- based lending rate (MCLR) system.
The reduction in ICICI Bank's lending rate will make EMIs on home and other loans tied to its marginal cost of funds based lending rate cheaper.
Under the revised rates, effective 1 August, the bank's one-year MCLR will come down to 7.45%, while the overnight MCLR will be 7.25%. One-year MCLR is considered important from a retail loans perspective, as all of a bank's long-term loans like home loans, are linked to this rate.
ICICI Bank marginal cost of funds- based lending rate with effect from 1 August 2020:
Overnight MCLR - 7.20%
One month MCLR - 7.20%
Three months MCLR - 7.25%
Six months MCLR - 7.40%
One year MCLR - 7.45%
Owing to higher treasury income from the sale of investments, ICICI Bank Ltd reported a 36% year on year jump in net profit to ₹2,599 crore for the quarter ended 30 June. The private lender’s net profit stood at ₹1,908.03 crore during the corresponding period a year ago.
ICICI Bank also revised interest rates on fixed deposits (below ₹2 crore) for effective 14 July. Starting from interest rate of 2.75% on FD deposits between 7 days to 14 days, ICICI Bank is currently offering 5.15% on deposits between 1 year to 389 days. Customers get 5.35% on FDs with maturity between 18 months days and 2 years 5.35% which rises to 5.50% on deposits of over three years. On term deposits maturing in 3 years to 10 years, ICICI Bank gives 5.50% interest. Senior citizens get an additional interest rate of 50 basis points across all maturities.