ICICI Bank raises retail lending rates

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ICICI Bank, India's largest private sector bank and second-largest lender overall, has hiked its retail lending rates, including home loan rates by 50 basis point (100 basis points = 1%). This move is obviously come up after announcement of RBI's hike of CRR by 50 basis point which in turn has done so to curb the northward movement of inflation. Although the new rates will be applicable to the new customers but the impact on burgeoning middle class will be twofold. First, the rising inflation and skyrocketing prices of essential commodities are cause to worry and now the hike in retail lending rates both fixed and floating will ccause double trouble for consumers. The recent unrealistic spurt in the real state and stock market led the RBI to take monetary measures like hiking standard asset provisioning on retail loans. But it has abstained in hiking rates however the private players has gone a step ahead and they increased the PLR.Analyst have their own arguments in for and against the move , as the hike may slow down the growth in the housing market but the real impact is remain to be seen as the India's economy is growing like never before and this obviously prompts the more spurt in real state and housing market.