ICICI has decided to increase its benchmark lending rates by 25 basis points. This change will be effective from July 4, 2011. The revised base rate and Benchmark Prime Lending Rate (BPLR) will be 9.50% and 9.2%. The bank also increased the floating reference rate (FRR) to 15.25%. Bank said the rates changes will not affect the fixed rate customers.
ICICI Bank has last time increase the key rates on May, 2011. This increase in the rates shows that the monetary policy tightened by RBI last month is reflecting in the banks tight liquidity. In the last couple of days, other banks like Canara Bank, Vorporation Bank and IOB have announced their hike in the lending rates.