After HDFC Bank, now ICICI hikes deposit rates

Signalling a hardening of interest rates in the industry, ICICI Bank has hiked its deposit rates for select tenures by up to 0.5% with immediate effect

Signalling a hardening of interest rates in the industry, India's largest private sector lender, ICICI Bank Ltd, on Thursday hiked its deposit rates for select tenures by up to 0.5% with immediate effect.

The Bank will now offer 6.75% for deposits having 390-days maturity as against 6.5% earlier, an ICICI Bank spokesperson told PTI in Mumbai.

Similarly, deposits having 590-days maturity will now offer an interest rate of 6.75% as against the earlier rate of 6.25%, the spokesperson said.

The hike in deposit rates comes shortly after another leading private sector lender, HDFC Bank Ltd, recently announced a hike of up to 1.5% in its deposit rates across some maturities.

Earlier this month, the government-owned IDBI Bank Ltd had also hiked its deposit rates by 0.25% for some tenures.

The country's largest lender, State Bank of India (SBI), however, had said that it may not hike deposit or lending rates at least till May-June, as the Bank has surplus liquidity.

"That (rate hike) may not happen till May-June—till the liquidity surplus goes away from the system," SBI chairman OP Bhatt had said.

Banks started hiking their deposit rates apparently due to the tightening of liquidity by the Reserve Bank of India, which asked banks to park more cash in the mandatory reserve window last month.

The central bank hiked its cash reserve ratio (CRR) by 0.75% to 5.75%, sucking out around Rs36,000-crore liquidity from the system.

With ICICI Bank and HDFC Bank taking the lead, more lenders are likely to follow the suit in the coming days.
 

  • Like this story? Get our top stories by email.

    User

    Maharashtra Chief Post-Master General held for taking Rs2 crore bribe

    CBI arrested Manjit Singh Bali, the chief post-master general for Maharashtra and Goa for accepting a bribe of Rs2 crore for transferring a piece of government land to private parties.

    The Chief Post-Master General for Maharashtra and Goa was arrested on Thursday by the Central Bureau of Investigation (CBI) for allegedly taking a bribe of Rs2 crore for transferring a piece of government land to private parties, reports PTI.

    Manjit Singh Bali was apprehended by the anti-corruption wing of the Central agency, officials said. Mr Bali had allegedly taken the bribe to transfer land meant for post offices to private parties, they said.
     

  • Like this story? Get our top stories by email.

    User

    COMMENTS

    Shadi Katyal

    10 years ago

    It is nice to see once a while someone arrested but we never hear beyond tht.Do they get put in jail and property confiscated or do they bribe and get away?

    Capital Gains

    Capital goods and infrastructure-related stocks made decent gains in a volatile market

    Gainers: 
    Shriram Transport Finance Company (up 4%) allotted 116.58 lakh equity shares to qualified institutional buyers (QIBs) for an aggregate sum of Rs583.86 crore, resulting in a dilution of around 5.2% stake. IVRCL Infrastructures & Projects (up 2%) has received a contract from National Highways...

    Premium Content
    Monthly Digital Access

    Subscribe

    Already A Subscriber?
    Login
    Yearly Digital Access

    Subscribe

    Moneylife Magazine Subscriber or MAS member?
    Login

    Yearly Subscriber Login

    Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation
  • We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 3 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)