Mumbai: ICICI Bank, India's second biggest lender, has cut car loan rates and raised dealer commissions, an Indian daily reported on Thursday citing people familiar with the matter.
The bank is said to have cut interest rates on car loans to 9.75-10.5 percent from 10.5-11.5 percent, the report said.
The bank's customers may now get a loan at around 9 percent as dealers pass on some of their commissions to customers, the paper reported.
The new rates are 50-75 basis points lower than rivals such as HDFC Bank and Axis Bank, the report said.
A spokesman for the bank, when contacted, did not immediately respond on the revised rates.
The new rates mark a return for the bank to the lucrative retail market at a time when automobile sales are at record levels and interest rates are low, the report said.
It also said banks had cut dealer commission to an average of 2 percent from 4 percent, about 18 months ago.
ICICI Bank is said to have now increased the dealer commission to 2.25-3 percent, the report added.
Bureau Report
First Published: Thursday, January 07, 2010, 10:45