Private sector banking major, ICICI Bank has slashed its lending rates by 50 basis points. The new rates will be applicable from Friday.

With this the benchmark advance rate (I-BAR) of the bank, will come down to a 15.75 percent from the earlier 16.25 percent. The bank has also lowered the floating reference rate (FRR) from 13.25 percent to a 12.75 percent, which would benefit the customers of the bank.

Earlier, in late April, the bank had lowered the PLR by 50 basis points. It was amongst the first private players to lower the lending rate by 50 basis points followed by the others.

Many PSBs have already reduced the lending rates, following the statement made by the finance Ministry, asking for lowering the interest rates. Following this, PSBs have lowered the lending rates. PNB has the lowest PLR in the country at 11 percent.

It is expected that in the meeting scheduled on June 10, between the finance minister and the banking chiefs of PSBs, the banks might be asked to further lower the lending rates.

(Notes - One basis point is one hundredth of a percentage point.)