ICICI Bank revises lending rate by 0.05%

Country's largest private sector lender ICICI Bank on Wednesday cut its marginal cost of funds-based lending rate (MCLR) by 0.05%, to take it at par with the rates offered by State Bank of India (SBI) and HDFC Bank.

This will help reduce the rate of interest to new borrowers.

Under the new rate structure effective from Wednesday, the bank will give out overnight loans to new borrowers at 8.95%, while the one-year MCLR, to which its housing loans are linked, now comes down to 9.15%.

Changes have also been effected in the one-month, three-month and six-month MCLR, a table on the bank's website showed.

The Reserve Bank of India (RBI) introduced the MCLR system from April 1 this year for faster transmission of its policy actions by the lenders. Banks are given the leeway to review their MCLR once a month.

The overnight MCLRs of banks are lower by over 0.30% from their base rate, from where they have migrated to the new system.