ICICI Bank announces reduction in home loan rates

Company press release, January 16, 2003

Mumbai

ICICI Bank (NYSE: IBN), one of Indias leading home loan providers, today announced a reduction in interest rates on its adjustable (floating) rate and fixed rate home loan products making them among the most cost effective offerings in the country. The new rates will be effective from January 17, 2003.

In adjustable rate home loans, ICICI Bank has announced a 0.50% reduction across all maturities (see table below). With this, adjustable rate home loans with maturity up to five years would be available at a rate of 8.75% only. The Bank has also announced a corresponding reduction in the ICICI Home PLR by 0.5%. This ensures that the benefit of reduced rates will be available not only to new customers, but also to existing customers who have taken adjustable rate home loans earlier from ICICI Bank.

ICICI Bank has also reduced the interest rates by 1.25% to 1.5% on fixed rate home loans across different maturities, to bring them in line with the current adjustable rate home loans. Fixed rate home loans with maturity upto five years will now be available at 8.75%, the same as the current adjustable rate home loans. Customers taking home loans from ICICI Bank now can also avail of the benefit of a special offer of 0% processing fee, which is applicable till January 31, 2003.

Said Mr. Vaidyanathan, Country Head - Retail Lending, ICICI Bank, With this reduction of interest rates, we are passing on the benefit of reduced cost of funds to our customers. Further, by bringing the interest rates on the fixed rate home loans at par with the current adjustable rates, we will be able to attract new segments of customers who specifically seek fixed rate home loans.

Mr. Vaidyanathan further added that the above rates would also be available on balance transfer schemes in force. Customers with existing home loans can benefit substantially by transferring their loans to ICICI Bank. For a customer who has taken a home loan of Rs. 10 lacs for 20 years at 12.50% in 2001, this can translate to a saving of about Rs. 7 lacs.

The new home loan rates effective from January 17, 2003:

Floating Fixed

Old Rate New Rate Old Rate New Rate

Upto 5 yrs 9.25% 8.75% 10.00% 8.75%

6 -10 yrs 9.75% 9.25% 10.50% 9.25%

11-15 yrs 10.25% 9.75% 11.00% 9.75%

16-20 yrs 10.25% 9.75% 11.00% 9.75%

21-30 yrs - 11.75% 10.25%

About ICICI Bank

ICICI Bank (NYSE:IBN),India's largest private sector bank, provides a broad spectrum of financial services to individuals and companies. ICICI Bank today services a growing customer base of more than 5 million customer accounts and 5 million bondholders accounts through a multi-channel access network. ICICI Bank Home Loans are available to customers for tenors upto 30 years, in more than 300 cities/towns across the country. Loans are offered for purchase of new homes, purchase of resale homes and home improvement. ICICI Bank Home Loans provide several benefits including complete door-step service, a Free personal Accident Insurance facility and HomeSafe - a free property insurance with every loan and ICICI Bank Home Search - property brokerage services.

Except for the historical information contained herein, statements in this release which contain words or phrases such as "will", "aim", "will likely result", "believe", "expect", "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, 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 Bank Limited with the Securities and Exchange Commission of the United States. ICICI Bank undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

For further press queries please contact Madhvendra Das at 022-653 6124 or e-mail madhvendra.das@icicibank.com.