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IDBI, ICICI and IFCI revise PLR

Consequent upon the recent measures announced by the Reserve Bank of India including the reduction in bank rate by 100 basis points, Industrial Development Bank of India has decided to reduce its minimum term lending rate by 50 basis points to 13.5 per cent (exclusive of interest tax) from its current level of 14 per cent (exclusive of interest tax).

Interest rates on individual loans would be fixed within a band of 3.5 per cent over MTLR depending on the risk perception in each case, as before.

The minimum short-term lending rate has also been revised downwards by 50 basis points to 12.5 per cent (exclusive of interest tax) from its current level of 13 per cent (exclusive of interest tax).

Interest rates on individual loans would be fixed within a band of 3.5 per cent over MSTLR depending on the risk perception in each case, as before.

The revised interest rates will be applicable to loans in respect of which agreements are executed on or after March 17, 1999 and would remain effective during the currency of the loan.

Meanwhile, in line with its focus on delivering value to its customers, Industrial Credit and Investment Corporation of India has decided to provide the full benefit of reduction in its borrowing costs to its clients.

Accordingly, ICICI's three-tier prime rate has been reduced by 50 basis points across the maturity spectrum.

The revised PLRs of ICICI, effective March 18, 1999 are as under: the short-term prime lending rate will be 13 per cent, the medium-term rate (1-3 years) will be 13 per cent; long-term rate (beyond three years) will be 13.5 per cent.

The third development financial institution, the Industrial Finance Corporation of India, has also decided to reduce its PLR, by 50 basis points, to 13.5 per cent in pursuant to Reserve Bank of India's recent decision to lower bank rate.

The present PLR stands at 14 per cent (exclusive of interest tax).

Interest rates on individual loans would be fixed within a band of 3.5 per cent over PLR depending on the risk perception in each case as before.

The short term prime lending rate for rupee loans with maturity of three years or less has also been revised downwards by 50 basis points to 12.5 per cent (exclusive of interest tax) from its current level of 13 per cent.

Interest rates on individual loans would be fixed within a band of 3.5 per cent over STPLR depending on the risk in each case as before.

The revised interest rates will be applicable to loans in respect of which agreements are executed on or after March 19, IFCI said in a media statement.

UNI

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