ICICI Bank cuts auto loan rates by 50 bps to 10.75 per cent
09 Oct 2009
ICICI Bank, the country's largest private sector lender, today announced a 50 basis point reduction on auto loans to 10.75 per cent with immediate effect.
The announcement, which comes close on the heels of a reduction in lending rates for auto loans by Tata Finance Ltd, is intended to woo customers in the festival season.
The rate cut is expected to prompt more rate cuts on the retail finance front.
Meanwhile, analysts expect the Reserve Bank of India to signal a rate hike in its monetary policy announcement due on 27 October.
The Foreign Investment Promotion Board (FIPB, meanwhile, has asked ICICI to obtain clearance from SEBI and RBI for its proposed Rs500-crore fund to be set up in Mauritius for making equity and equity-related investments in the Indian market.
The proposed fund has a green shoe option of up to Rs250 crore, giving ICICI Bank the potential to raise Rs750 crore from domestic as well as international investors
ICICI had sought clearance for the emerging India fund company with a term of seven years, with the option of increasing it by two years. FIPB, however, directed ICICI Bank to first register the fund with SEBI and obtain approval from the Reserve Bank of India before granting clearance.
