Business Standard

ICICI Bank hikes term deposit rates by 50-75 bps

The bank has, however, kept its base rate or minimum lending rate, unchanged at 9.75%

Related News

ICICI Bank, the largest private sector lender in the country, has increased domestic rates in select maturities by 50-75 basis points. The rate hike is effective from today and is applicable only on retail deposits maturing in 46 days to 389 days.

The bank has, however, kept its base rate or minimum lending rate unchanged at 9.75%. The private lender currently offers maximum nine% on retail term deposits that mature in 390 days to two years.

Karnataka Bank
Karnataka Bank has also raised its deposit rates 25-50 basis points across maturities, effective Monday.

Andhra Bank
Facing pressure from rising cost of funds, Andhra Bank has decided to hike lending rate by 25 bps from August 19. It has raised base rate to 10.25 per cent. It also hiked benchmark prime lending rate to 14.50 per cent. Following RBI’s first quarter review of monetary policy on July 30, several private sector banks, including HDFC Bank, Axis Bank and YES Bank, had raised term deposit rates by 25-225 basis points.

Several other private sector banks including HDFC Bank, Axis Bank and YES Bank had raised their term deposit rates by 25-225 basis points following the Reserve Bank of India's (RBI) first quarter review of monetary policy on July 30, 2013. A few lenders like HDFC Bank and YES Bank have even increased their base rates by 20-25 basis points.

had initially said it will watch the market before revising its interest rates.

"Market rates at the very short-end have gone up. But the impact on our total cost of funds is small, because our dependence on short-term and wholesale deposits is limited. Right now, it is too early to arrive at a conclusion (on increasing deposit and lending rates). We will watch the market," Chanda Kochhar, managing director and chief executive officer of ICICI Bank, had said after the central bank's monetary policy review.

While had kept the key policy rate unchanged on July 30, 2013 its liquidity tightening measures in the past few weeks have impacted the short-term rates.

On July 15, 2013 the central bank capped banks' borrowings under the facility (LAF) and increased the marginal standing facility (MSF) rate by 200 basis points to 10.25%.

The measures led to tightness in liquidity. Bankers had predicted if the steps were not rolled back soon short-term deposit rates would increase.

Read more on:   
|
|
|

Read More

WB to give soft loan for low-cost housing

Project will be financed by credit from International Development Association

Quick Links

More news from Finance Rss icon

Bank credit dropped in 1st half of October

Though credit demand has been tepid for several quarters, this fortnightly dip came just ahead of the Diwali week, the main festive season for ...

Rajan rate-cut bets spur Asia's biggest swap drop

The fixed payment to lock-in rates for a year using the derivatives fell 37 basis points this month, the most since September 2013, to 8.10%

YES Bank enters home loan business

Move follows RBI's decision to allow banks to raise long-term resources to finance affordable housing

Back to Top