ICICI Bank share price gains 5% post lending rate cut

ICICI Bank share price was among the top gainers on NSE, rising almost 5% after the lender announced that it has cut the marginal cost based lending rate (MCLR) on loans for all tenors.

Following the lending rate cut, stock price of ICICI Bank opened with a gain of 2.24% today and later touched an intraday high of Rs 366.05, gaining 5.04% on BSE against the closing value of Rs 348.50.

ICICI Bank share price trades higher than its 5, 20 and 50-day moving averages but lower than 100 and 200-day moving averages. The stock has risen 13.69% in one week.

Market capitalisation of the lender currently stands at Rs 2,34,698.92 crore.

Abhijeet Ramachandran, Independent Analyst/ Co-Founder and trainer at Tips2trade said, "ICICI Bank looks very bullish and could move up to Rs 383 in the coming few sessions. However, intraday charts look overbought & today we could see a dip till Rs 350-351 levels which can be used by traders to create fresh buy positions."

The private sector lender has lowered rates by 0.05 per cent which will be effective from June 1, 2020.

The one year MCLR, to which a majority of loans such as residential mortgages and auto loans are tied now stands at 7.70 per cent, according to data available on the bank's website. The new rate for a loan of 6 month tenure is 7.65 per cent. Similarly, three and one month loans will have interest rates of 7.50 per cent and 7.45 per cent, respectively.

On May 11, ICICI Bank had reduced its fixed deposit rates by up to 50 basis points. On May 22, Reserve Bank of India (RBI) lowered its repo rate by 40 bps to 4 per cent.