ICICI Bank slashes MCLR by 5 basis points across tenors

Private-sector lender ICICI Bank had earlier reported a 36% year on year (YoY) rise in its net profit to Rs 2,599 crore in the June quarter.

Private lender ICICI Bank on Tuesday reduced its marginal cost of funds based lending rate (MCLR) by 5 basis points (bps) across tenors. The one-year MCLR of ICICI Bank, to which many of the consumer loans are linked, will come down to 7.4% after the reduction. The bank has effectively reduced one-year MCLR by 80 bps this year, in a response to 115 bps reduction in repo rate by the RBI. The monetary policy committee (MPC) on August 6 maintained accommodative stance and kept repo rate unchanged at 4%.

The overnight and one-month MCLR of ICICI Bank stood at 7.15%, after the reduction. Similarly, three months and six months MCLR remained at 7.2% and 7.35%, respectively. The reduction in the lending rates is effective from September 1.

Another private lender, HDFC Bank, had earlier reduced its MCLR by 10 bps across tenors last month. HDFC Bank’s overnight MCLR stood at 7% and the one-month remained at 7.05%. The bank’s one-year MCLR stood at 7.35%, while the three-year had been set at 7.55%. Similarly, largest lender SBI had earlier reduced MCLR for shorter tenors by 5-10 bps . However, one-year MCLR of SBI stood unchanged at 7%.

Private-sector lender ICICI Bank had earlier reported a 36% year on year (YoY) rise in its net profit to Rs 2,599 crore in the June quarter. The bottom-line was supported by Rs 3,092 crore income from the stake sale in its subsidiaries.

ICICI Bank had sold 3.96% stake in ICICI Lombard for Rs 2,250 crore and 1.5% stake in ICICI Prudential Life for Rs 840 crore during June quarter. Last month, the bank has further divested 2% stake in its subsidiary firm ICICI Securities through an open market transaction for Rs 310 crore.