New Delhi: Yesterday it was SBI stealing the limelight with a 0.50% to 2.0% reduction in a wide variety of retail loans rates while ICICI finding itself cornered with just a 50 basis point reduction in fresh floating rate home loan. Today however, ICICI Bank extended the discounts on auto and other retail loans with immediate effect.

Mr V. Vaidyanathan ICICI Bank executive director said, "We are reducing the interest rates on auto and personal loans by 0.25-0.5 percent.” All fresh loan applicants will be able to avail this discounts till 31 October. “The reduction in interest rates on auto and other retail loans will be on select categories or vehicle models and not across the board." he further added.

Mr. Vaidyanathan joined ICICI Bank in 2000. Earlier he worked with Citibank in India for over 10 years. He has been responsible for setting up the retail finance business, which has been a priority area for ICICI Bank.

This offer is quite tempting but is no match to the SBI's reduction in retail loan rates. Like other banks, which have offered discounts on their interest rates till October 31st, ICICI Bank is also adopting a wait and watch policy. By providing various loans particularly home loans at reduced interest rates, ICICI Bank is trying to cash in the festive season rush. But, it is also keeping an eye on the RBI monetary policy review expected by October 31, which will decide the future course of action.