ICICI cuts MCLR by 5 basis points
Posted on: 03/Apr/2019 2:42:58 PM
ICICI has come up with price cut of 5 basis points in its Marginal Cost of Fund-based Lending Rate or MCLR. This is implemented across tenors. According to the official ICICI website notification, it is said that the lending rates which were earlier at 8.55 percent is now reduced to 8.5 percent pertaining to tenors ranging from overnight to 1 month. Coming on to 3 months tenor, the rate is slashed to 8.55 percent while the previous was 8.60. And the 6 months tenor is slashed down to 8.7 percent while the previous range was 8.75 percent. For the 1 year tenor, the rate is reduced from earlier 8.85 percent to 8.75 percent. This is to come into effect starting from 1st April 2019.
What is MCLR?
MCLR stands for Marginal Cost of Fund-based Lending Rate. It is the reference rate for internal purposes. This will be the rate based on which the interest for loans will be decided.
It is to be noted that the Reserve Bank of India had imposed a price cut of 25 bps and made it 6.25 percent during the bi-monthly policy review conducted.
On the whole, the advances of ICICI bank saw an increase by 12 percent and raised to Rs 5.654 lakh crore by December 2018.
It is to be noted that the MCLR with several other lenders had got reduced down with banks including HDFC, Bank of Baroda, Punjab National Bank, Union Bank of India, YES Bank, etc.
