ICICI bank has slashed the base rate by 5 basis points to 9.70 per cent. The base rate was 9.75 per cent earlier. ICICI is renowned as the largest private sector bank. By cutting the base rate, ICICI is balancing the lending rates with the market leaders SBI and HDFC.
"The revised rate, effective from June 26, 2015, will be 9.70 per cent per annum as against 9.75 per cent at present with effect," the bank said in an exchange filing. This is the second rate cut by ICICI this year. In April, it had cut the base rates by 0.25 per cent to 9.75%.
On June 2, RBI Governor Raghuram Rajan had boosted banks to reduce the lending rates in the Monetary Policy Statement. SBI was the first to cut its base rate. Kotak Mahindra Bank also signed a rate cut.
The industry is also expecting a rate cut from RBI in this season of Monsoon. Raghuram Rajan also stated that good Monsoon can bring a hope of Rate cut.