ICICI Bank cuts home loan rates for festive season

ICICI Bank, the country's second largest lender, has cut its floating rate on home loans by up to 100 basis points until December end.

The bank said yesterday that loans up to Rs3 million would be charged  at 10.25 per cent interest, down from 10.5 per cent for loans up to Rs3 million.

The interest rate for loans between Rs3 million and Rs30 million would be 10.5 per cent, down from 11.5 per cent, the bank said. It added that the new rates would apply only for the festive period from October to December.

Meanwhile, according to analysts, earnings growth at India's private banks in the quarter ended 30 September were likely to outpace state-owned lenders who were hobbled by bad loans.

Local banks are expected to report an annual earnings growth of 25 per cent, although net interest income - the difference between interest earned and expenses incurred was likely to be subdued as loan growth had failed to pick up.

The trend of private banks outperforming public sector banks is expected to continue as the latter still had a high amount of NPAs (non-performing assets). Analysts expect a rise in earnings of private banks by 25 per cent while