ICICI Bank hikes benchmark lending rate by 50 bps; details here 

Private lender ICICI Bank has hiked its external benchmarking rate by 50 basis points (bps) to 8.60 per cent per annum from June 8, 2022. The decision came after the Reserve Bank of India (RBI) hiked repo rate by 50 basis points (bps) to 4.90 per cent in its recently concluded monetary policy committee (MPC).

The notification on ICICI Bank’s website reads, “RBI policy repo rate effective June 8, 2022 is 4.90 per cent. ICICI Bank External Benchmark Lending Rate (I-EBLR) is referenced to RBI policy repo rate with a mark-up over repo rate. I-EBLR is 8.60 per cent p.a.p.m. effective June 8, 2022.” EBLR is the lending rate below which a bank is not allowed to lend loans.

The I-EBLR was hiked last on May 5 by 40 basis points or bps to 8.10 per cent. This rise in I-EBLR was announced after the central bank announced an off-cycle hike in repo rate to 4.40 per cent on May 4.

Meanwhile, the private lender also hiked its marginal cost of funds-based lending rate (MCLR or I-MCLR) across tenors from June 1, 2022. MCLR for loans in overnight, one month and three-month tenors stands at 7.30 per cent and 7.35 per cent respectively. Lending rates for six months and one-year tenors are at 7.50 per cent and 7.55 per cent respectively.

Shares of ICICI Bank went down by 0.58 per cent to 725.25 apiece on the BSE.