ICICI Bank cuts home loan rate by 0.25%

Zee Media Bureau

ICICI Bank Ltd, India's biggest private sector lender by assets, Tuesday announced a cut in home loan interest rate by 0.25 percent for new and existing borrowers.

Last week, many banks including State Bank of India, ICICI Bank, HDFC Bank and Axis Bank cut lending rate by up to 0.25 percent after RBI governor Raghuram Rajan's tough talk with bankers on the issue.

After cutting the policy rate twice this year, the central bank kept it unchanged at 7.5 percent in its monetary policy on April 7.

The Reserve Bank had blamed banks for not passing the benefits of two repo rate cuts to borrowers and termed as "nonsense" the lenders' claims that cost of fund was high.

"The banks marginal cost of funding (has) fallen, the notion that it hasn't fallen, is nonsense; it has fallen" Rajan had said.

With Agency Inputs