ICICI Bank cuts home loan rates
ICICI Bank, has cut its home loan rate by 45 basis points (100bps = 1 percentage point) to 8.65% from 9.1% earlier. The bank has also reduced its benchmark rate -the one-year marginal cost of lending rate (MCLR) -by 70 basis points to 8.2% from 8.9% earlier. Following the rate reduction, the private bank’s home loans are available 5bps higher than SBI’s best rate of 8.6%.
With cost of funds coming down on the back of a surge in deposits due to demonetisation, many banks are reducing their lending rates. On Monday , Kotak Mahindra Bank announced a cut of up to 0.45% in its lending rates. Public sector lender Dena bank slashed its benchmark lending rate by 0.75%. Another nationalised institution, Oriental Bank of Commerce (OBC), announced that it has slashed its 1-year MCLR by 80bps to 8.6%. While Kotak Mahindra Bank has cut MCLR by 0.20% to 0.45% across tenors, Dena Bank’s MCLR now stands at 8.55% for a one-year tenor.