On the heels of the Reserve Bank of India hiking rates by 25 basis points, the country's largest private sector lender ICICI Bank today announced a hike of0.50 basis points on interest rates.The revised rates would be applicable from the middle of next week, Chanda Kochar, head (retail business) for ICICI, said here."Normally we see the rates slow down after January-March period. But this year it did not happen. Considering this scenario, we have taken this decision," Kochar said.As of now the rates would continue to be higher and the bank would have to react according to the market conditions., Kochar said.With this revision, the floating interest rate for home loan has increased to 9.50% from 9% earlier while the fixed interest loan rate has gone up to 10.75% from 10.25%.The hike has also affected the corporate lending rates, which were not revised in June, the last time the bank hiked its rates.However, the bank has not changed the interest rates on deposits.Explaning this move Kocchar said, "it is true that our costs have gone up post-January and the rates did not go down proportionately, which we expected. So, we have not touched the deposit rates."
