ICICI Bank hikes lending rate to 10%

ICICI Bank | Image: topnews.in

ICICI Bank | Image: topnews.in

 

Amidst the financial turmoil the country is facing; ICICI Bank Ltd, one of India’s largest private lenders has decided to increase the lending rate. The hike will impact all loans linked to the base rate and will be effective from this Friday. In totality this hike will increase the lending rate by quarter of the percentage to 10%. The minimum benchmark rate below which a bank is not allowed to lend was 25 basis points. This new reform was brought in for referral after rivals HDFC Bank Ltd. and Axis Bank Ltd. increased their lending rates after RBI (Reserve Bank of India) effectively hiked the short-term rates in the banking system.

 

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