After HDFC, it is ICICI’s turn to increase deposit rates
By Neelima Shankar
Feb 26, 2010
Print    Email    RSS   

As a result of hike in the cash reserve ratio by the RBI, the country's largest private sector lender, ICICI Bank has increased deposit rates by up to 50 bps on select maturities with immediate effect.

With this, the bank will now provide 6.75 % interest in 390 days deposit as well as on 590 day deposit, an increase by 25 basis points in the former and 50 basis points in the latter.

The hike in the bank's deposits has come shortly after HDFC Bank's declaration of a similar hike by about 150 bps on selected deposits.

IDBI Bank has been the first to increase its deposit rates by 25 bps earlier this month. Also Union Bank of India has hiked its deposit rates by 25-50 bps on maturities tenoring 1-5 years.

This sudden decision by banks to hike deposit rates is considered to be a means to attract customers to deposit their money with these banks.

However analysts suggest that as liquidity is still comfortable and credit off take has not gained pace, all banks are not in hurry to go for deposit rate hike.

Supporting this school of thoughts is the largest lender of the country, State Bank of India. The Bank has declared that its deposit rates will not increase till May -June.

Those banks which have increased their rates may be apprehending that despite sufficient liquidity the cash may soon dry up owing to policy tightening measures adopted by RBI.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Carnival of Indian Personal Finance Blogs #1
Know all about non-bank fixed deposits
FMPs or FDs: Make an informed choice
For what purpose do you want to invest in...
FDs or Equity? Which suits you best?

MEXING: CaℒL Giℛℒ In Hoshiarpur 09855660911...
Sakeela.CaℒL Giℛℒs In Kharar 0985566O911...
NANGAL: CaℒL Giℛℒ In Una 09855660911 Escoℛt...

Federal Bank launched V connect for its customers Feb 12, 2015
Andhra Bank on expansion mode Feb 11, 2015
Dena Bank earned a profit of 13%. Feb 9, 2015
Banks expected to cut down the rates Feb 5, 2015
RBI kept the rates unchanged Feb 4, 2015
News Archive