ICICI ANNOUNCES INCREASE OF 0.50% IN PRIME LENDING RATES
On July 21, 2000 the Reserve Bank of India (RBI) announced a package
of monetary tightening measures aimed at containing the volatility in
the foreign exchange market and aligning the rupee interest rates with
interest rates in the US markets. The measures included a two stage increase
in CRR (Cash Reserve Ratio) from 8% to 8.5%, bank rate hike from 7% to
8% and a 50% reduction in refinancing available to banks from RBI.
As a consequence of the above measures, there has been considerable volatility
in the interest rates coupled with tight liquidity conditions. Interest
rates have gone up across the maturity spectrum and ICICI's own borrowing
costs have also increased across the spectrum.
In line with the current market conditions, the three Prime Lending Rates
of ICICI (PLRs) have been increased by 0.50%. The revised PLRs of ICICI,
effective September 12, 2000 are given below: -
Benchmark
Final
Maturity of Loans
Rate
STPR
Variable maturity, with
interest rate to be re-set annually
13.00%
MTPR
Greater than 1 year and
upto 3 years
13.00%
LTPR
Beyond 3 years
13.00%
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.