ICICI Bank has announced an increase in interest rates for various tenors of retail fixed deposits by 75-100 basis points with effect from August 1. You can easily go through the updated icici fixed deposit rates here and also know the hidden terms which their executives don't tells publicly.
The bank has also announced an increase of 75 basis points in its floating reference rate (FRR) for consumer loans (including home loans) with effect from July 31. The revised FRR will be 14.25 per cent as against 13.50 per cent per annum at present. Existing fixed rate customers will not be impacted by the increase and their contracted rates will remain unchanged, ICICI Bank stated in a release.
The bank has also announced an increase of 75 basis points in its Benchmark Advance Rate (I-BAR). The revised I-BAR will be 17.25 per cent as against 16.50 per cent per annum at present.
HDFC, for its part, has revised its floating interest rates on home loans for both existing and new customers with effect from August 1.
This is in line with the rates of interest in the economy, which have hardened due to rising inflation and shrinking liquidity in the domestic market, HDFC stated in a release.
HDFC has increased its Retail Prime Lending Rate (RPLR) on which its Adjustable Rate Home Loans (ARHL) is benchmarked, by 75 basis points with effect from August 1.
The increase in RPLR will affect existing borrowers whose loans come up for re-pricing on or after August 1. HDFC follows a three-month reset cycle for its floating rate loans and hence the change in RPLR will impact the existing customers over the next three month period, it stated.
With this increase, the total increase in HDFC’s RPLR from January to date is 100 basis points as compared to 150-basis point rise in 10-year government securities rates.
For new home loan customers, the ARHL loans will now be priced at a minimum of 11.75 per cent while the fixed rates will be 14 per cent per annum.
PTI reports:
Public sector lender Punjab National Bank on Tuesday announced an increase of up to one percentage point in its prime lending rate to 14 per cent.
Private sector Axis Bank also hiked its PLR by 50 basis points to 15.75 per cent, which came into effect on Tuesday, while Jammu & Kashmir Bank hiked its PLR by up to one percentage point.
As a part of its measures to tighten liquidity in the banking system to counter inflation, the Reserve Bank of India has hiked the short-term inter-bank lending rates (repo rate) and mandatory cash reserve (CRR) by 50 basis points and 25 basis points, respectively.
Experts believe that home loans could get costlier again in the coming months as the RBI is expected to further tighten its monetary policy with additional CRR and repo rate hikes.
Thursday, July 31, 2008
Friday, July 18, 2008
Retail loan growth begins to taper
High inflation, carnage in the stock market, and rising bad loans have adversely impacted retail loan disbursement across most players. Some large players have seen loan offtakes falling by up to 30% in the past few months. With interest rate hikes of around 75 basis points in a month, disbursements in the first half of July are already down by 25% compared with June. Bankers feel the market will remain subdued over the next one year.
Retail loans grew by around 30% a year in the past 4-5 years. However, toward March this year, the growth fell to around 13%. According to RBI data, as on February 15, 2008, retail loans grew by 13.2% against 30.6% a year ago. ICICI Bank, the country’s biggest retail lender, has seen a drop in disbursements in almost all retail segments in the past few months.
Some non-banking finance companies (NBFCs) like Citi Financial and GE Money have been cutting down their disbursements for some time now. Among banks, Axis Bank has gone slow on credit cards while Development Credit Bank (DCB) and StanChart have gone slow on unsecured lending. Some of the bigger public sector banks have also said to have seen similar fall in retail loan disbursements. Most players, including NBFCs, have seen a sharp slide in all unsecured products like personal loans and credit cards.
Retail loans grew by around 30% a year in the past 4-5 years. However, toward March this year, the growth fell to around 13%. According to RBI data, as on February 15, 2008, retail loans grew by 13.2% against 30.6% a year ago. ICICI Bank, the country’s biggest retail lender, has seen a drop in disbursements in almost all retail segments in the past few months.
Some non-banking finance companies (NBFCs) like Citi Financial and GE Money have been cutting down their disbursements for some time now. Among banks, Axis Bank has gone slow on credit cards while Development Credit Bank (DCB) and StanChart have gone slow on unsecured lending. Some of the bigger public sector banks have also said to have seen similar fall in retail loan disbursements. Most players, including NBFCs, have seen a sharp slide in all unsecured products like personal loans and credit cards.
Monday, July 14, 2008
ICICI Bank mulls overseas retail franchise buy
India's largest private-sector lender,ICICI Bank, which announced its plans for acquisition in Britian, Canada or Germany, on Friday said that the area it was mulling was a retail banking franchise.
"We are interested in acquiring a retail banking fpanchise in some of these markets, consistent with our articulated strategy mf building a sustainable retail deposit base as a key element of our international business," ICICI Bank's Joint Managing Director, Chanda Kochhar, told.
However, the bank was not considering picking up minority stakes in financial institutions overseas, Kochhar said.
"As in any large organisation, we evaluate the business environment and possible strategic opportunities on an ongoing basis. However, we would not be interested in acquiring minority stakes," Kochhar said.
While the western markets present acquisition opportunities given the prevailing market conditions, such opportunities will come with certain challenges, Kochhar said.
"Western markets present acquisition opportunities, given the current situation in their financial sectors. But such opportunities will come with certain challenges," Kochhar said.
"We are interested in acquiring a retail banking fpanchise in some of these markets, consistent with our articulated strategy mf building a sustainable retail deposit base as a key element of our international business," ICICI Bank's Joint Managing Director, Chanda Kochhar, told.
However, the bank was not considering picking up minority stakes in financial institutions overseas, Kochhar said.
"As in any large organisation, we evaluate the business environment and possible strategic opportunities on an ongoing basis. However, we would not be interested in acquiring minority stakes," Kochhar said.
While the western markets present acquisition opportunities given the prevailing market conditions, such opportunities will come with certain challenges, Kochhar said.
"Western markets present acquisition opportunities, given the current situation in their financial sectors. But such opportunities will come with certain challenges," Kochhar said.
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