ICICI ANNOUNCES REDUCTION OF 0.50% IN PRIME LENDING
RATES
The Government of India has proposed a cut in the benchmark
interest rates on small savings schemes and Public Provident Fund (PPF)
by 1.00% to 1.50%. The Reserve Bank of India has also cut the Bank Rate
by 1% in two steps. Following these reductions, market interest rates
are expected to show a downward trend.
ICICI has always been seeking to lower cost of resources
so as to deliver credit at a lower cost to Indian corporates. As a result
of the aforesaid initiative taken by the Government of India and the Reserve
Bank of India, ICICI's borrowing costs have declined compared to the costs
prevailing at the time of previous PLR revision. In line with its focus
on delivering value to its customers, ICICI has decided to provide the
benefit of reduction in its borrowing costs to its clients. Accordingly,
ICICI's prime lending rates have been reduced across the maturity spectrum
by 50 bps. The revised prime lending rates of ICICI, effective March 14,
2001 are given below: -
Benchmark
Final
Maturity of Loans
Rate
STPR
Variable maturity,
with interest rate to be re-set annually
12.50%
MTPR
Greater than 1 year
and upto 3 years
12.50%
LTPR
Beyond 3 years
12.50%
Except for the historical information contained herein,
statements in this release which contain words or phrases such as "will",
"aim", "will likely result", "believe", "expected", "will continue", "anticipate",
"estimate", "intend", "plan", "contemplate", "seek to", "future", "objective",
"goal", "project", "should", "will pursue" and similar expressions or
variations of such expressions may constitute "forward-looking statements".
These forward-looking statements involve a number of risks, uncertainties
and other factors that could cause actual results to differ materially
from those suggested by the forward-looking statements. These risks and
uncertainties include, but are not limited to our ability to successfully
implement our strategy, future trends in interest rates, future levels
of non-performing loans, our growth and expansion, the adequacy of our
allowance for credit losses, technological changes, investment income,
cash flow projections, our exposure to market risks as well as other risks
detailed in the reports filed by ICICI Limited with the Securities and
Exchange Commission of the United States. ICICI undertakes no obligation
to update forward-looking statements to reflect events or circumstances
after the date thereof.
For further information contact:-
Mr. Madhvendra Das on >+91-22-6536812 or email to das@icici.com