ICICI Bank has raised fixed deposit rates by up to 0.75 per cent across select maturities due to a series of steps taken by Reserve Bank of India (RBI), leading to
tightening of liquidity condition.
The new rates would be effective from August 16.
According to the private sector lender's website, interest rate on term deposits with 46-60 day maturity have been raised by 0.75 per cent to 7 per cent. For 61-289 days as well, the increase is by similar percentage points to 7.75 per cent.
At the same time, the bank raised interest rate by 0.5 to 7.75 per cent compared to 7.25 per cent 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 per cent from 7.50 per cent.
Cost of funds have gone up for banks as the RBI the Reserve Bank has taken a series of steps to check the fall of rupee against the US dollar.
Faced by tight liquidity, leading banks like
HDFC Bank, Axis Bank, Andhra Bank and Canara Bank have raised fixed deposit rates or base rate (also called
minimum lending rate) or both.
State Bank of India, the country's largest lender, however went public saying it will not cut its rates as it is flushed with fresh deposits and its reliance on retail deposits.
With inputs from PTI 
Special 
