ICICI Bank raises fixed deposits rates by up to 0.75%

New rates effective from August 16

ICICI Bank has raised fixed deposit rates by up to 0.75% across select maturities due to a series of steps taken by RBI, leading to tightening of liquidity condition.

The private sector bank has raised interest rate on term deposits with 46-60 day maturity by 0.75% to 7%. For 61-289 days as well, the increase is by similar percentage points to 7.75%, as per ICICI Bank website.

At the same time, the bank raised interest rate by 0.5 to 7.75% as compared to 7.25% for fixed deposit maturing between 290 days to 1 year.

For term deposits between 1 year to 389 days, the rate has been raised by similar percentage points to 8% from 7.50%.

The new rates would be effective from August 16, it said.

Faced by tight liquidity, the lender's competitors like HDFC Bank and Axis Bank have not only raised fixed deposit rates but have also increased base rate or minimum lending rate by up to 0.25%.

Meanwhile, some of the public sector banks like Andhra Bank, Canara Bank have also raised interest rates.

The country's largest lender State Bank of India has, however, gone public saying that it will not cut its rates as it is flushed with fresh deposits and its reliance on retail deposits.

SBI Chairman Pratip Chaudhuri had said banks with excessive reliance on the wholesale funding are the ones raising the lending rates as the rates in the money markets hardened following the RBI moves.

Cost of funds have gone up for banks as the Reserve Bank has taken a series of steps to check the fall of rupee against the US dollar.

On July 15, RBI put in place measures to restore stability in the foreign exchange market, including raising the Marginal Standing Facility and bank rates to 10.25% and restricting access by way of repo window to Rs 75,000 crore.