New Delhi: Interest rates are on the rise again. ICICI Bank, India's largest private sector bank, has raised the lending rates by half a percent across all tenures and on deposits of less than Rs 1 crore.
The Bank will raise the interest rates between quarter of a percent to three-fourths of a percent. The hike in interest rates will be effective from December 18.
The interest rate hike follows RBI's decision last week to increase the Cash Reserve Ratio (CRR), the part of deposits banks must park with it, to 5.5 per cent from 5.0 per cent earlier.
The bank has also increased its prime lending rate or benchmark advance rate (BAR) and floating reference rate (FRR) by 50 bps.
It also announced an increase of 50 bps on lending rates for consumer loans, including home loans, from the same date.
Accordingly, its benchmark advance rate will now be 13.75 per cent per annum payable monthly as against 13.25 per cent.
The bank's floating reference rate (FRR) has been increased to 10.75 per cent from 10.25 per cent. For existing floating rate customers, the increase in FRR by 50 bps will take effect from January 1.
Existing fixed rate customers whose loans are fully disbursed, will, however, not be impacted by the increase and their contracted rates will remain unchanged, the bank said.
With Agency inputs
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