MUMBAI: A day after Finance Minister P. Chidambaram asked public sector banks not to raise interest rates on home loans, private sector banking major ICICI Bank hiked its home and other retail loans by one percentage point with effect from February 9.
The Benchmark Advance Rate (I-BAR) and the Floating Reference Rate (FRR) for consumer loans, including home loans, have been revised by one percentage point from 13.75 per cent to 14.75 per cent and 10.75 per cent to 11.75 per cent, respectively.
Along with the hike in lending rates, the bank hiked the deposit rates that entail up to Rs. 1 lakh income tax exemption. Interest rates on fixed deposits of value less than Rs. 1 lakh and for a five-year tenure have been raised from 8.25 per cent to 9.5 per cent. The revised deposit rates would come into effect from February 9.
ICICI Bank said that for the existing floating rate customers, the increase in the Floating Reference Rate will be effective from the respective reset dates. PTI