ICICI Bank hikes BPLR and FRR rates by 50 basis points

ICICI Bank has raised its benchmark lending rate by 50 basis points to 16.25 per cent. Now the home, auto and corporate loans will be costlier.

A statement released by bank stated the revised rates will come into effect from August 18, 2010.

The bank has also raised its Floating Reference Rate (FRR) by 50 basis points, for consume loans (including home loans). After the raise the FRR will be 13.25 per cent as against 12.75 per cent.

ICICI Bank said, up to June 30 the loans and advances interest rates were determined with reference to BPLR and FRR but from July 1, 2010 the interest rate on new loans and advances including consumer loans are determined with reference to ICICI Bank Base Rate (I-Base).

However the bank has clarified that the customers who have taken loan on fixed rate of interest will not be affected by revised rates and their contracted rates will remain unchanged.

I-Base is set at 7.50% p.a. The Bank sources said, it will continue to offer its current dual rate home loan scheme at existing rates.

Country’s largest lender the State Bank of India has also hiked its lending rates by 50 basis points and deposit rates by 150 basis points.