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ICICI Bank hikes EBLR rate, interest rates on FDs after RBI repo rate hike; details here  

ICICI Bank hikes EBLR rate, interest rates on FDs after RBI repo rate hike; details here  

ICICI Bank hikes EBLR rate: The revised EBLR rates are effective from May 4.  

MCLR is essentially the threshold lending rate below which a bank is not allowed to lend. MCLR is essentially the threshold lending rate below which a bank is not allowed to lend.

Private lender ICICI Bank has hiked its external benchmark lending rate (EBLR) by 40 basis points or bps to 8.10 per cent soon after the Reserve Bank of India (RBI) announced a 40 basis points hike in repo rate to 4.40 per cent. The revised EBLR rates are effective from May 4.  

ICICI said on its website, "'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 8.10 per cent p.a.p.m. effective May 4,2022.”

EBLR is essentially the threshold lending rate below which a bank is not allowed to lend.

External benchmark lending rate (EBLR) or I-EBLR stood at 7 per cent for overnight and one-month tenures, respectively, as of May 1. The bank’s EBLR stood at 7.05 per cent for tenure of up to three months whereas for tenure of six months, the EBLR stood at 7.20 per cent.  The EBLR stands at 7.25 per cent for tenure of one year, as per the ICICI website.  

Meanwhile, the private lender has also hiked the interest rates on fixed deposits worth less than Rs 5 crore by 25 basis points (bps). This hike in interest rates will be effective from May 5. For FDs maturing in 7-29 days, the ICICI Bank will give an interest rate of 2.75 per cent for general public and senior citizens.  

The bank will provide an interest rate 3 per cent to general public and senior citizens if they have FDs that are maturing in 30-60 days. In case of FDs maturing in 61-90 days, the bank provides an interest rate 3.25 per cent. ICICI Bank will provide an interest rate of 3.50 per cent for FDs maturing in 91-184 days and an interest rate of 3.75 per cent for deposits maturing in 185-270 days.  

In case of FDs maturing in 271 days to less than a year, the bank will provide an interest rate of 4 per cent. For FDs maturing in a year to 15 months, you will get an interest rate of 4.50 per cent from ICICI Bank. The bank will provide 4.60 per cent interest rate for FDs maturing in 15 months to less than 18 months.  

In case your FD matures in 18 months to 2 years, the bank will provide an interest rate of 4.65 per cent whereas it will provide an interest rate of 4.75 per cent in case your FD matures in 2 years 1 day to 3 years. The ICICI Bank will provide an interest rate of 4.80 per cent in case your FD matures in 3 years 1 day to 10 years.  

(Correction: This story has been corrected to say External benchmark lending rate (EBLR) instead of Marginal Cost of funds-based Lending Rate.)

Also read: Expect repo rate hikes in June, Aug too; 75 bps hike in FY23 likely: SBI Ecowrap

Also read: RBI Guv Das announces hike in interest rate by 40 bps to 4.40% in 'off-cycle' MPC meet