ICICI Bank hikes retail term deposit rates on select maturities

Mumbai: Country's second largest private sector lender by assets ICICI Bank Wednesday hiked retail term deposit interest rates by up to 0.25 percent on select maturities.

Interest rates in the system are on an upward trajectory amid a liquidity squeeze and two rate hikes by the RBI, with a slew of lenders announcing reviews. Generally, hikes in lending rates are preceded by deposit rate hikes.

ICICI Bank's head of retail liabilities group, Pranav Mishra, said the lender feels prevailing volatility in the financial market will lead to a renewed interest among customers to invest in fixed deposits.

The bank will offer 7.50 percent interest on deposits under Rs 1 crore for a tenor of above two years up to three years, a hike of 0.25 percent, an official statement said.

The hikes are effective Thursday.

The bank has also upped its offering by 0.25 percent in other buckets including 46-60 days, 61-90 days, 91-120 days and 121-184 days.

In the one year to 389 days bucket, it has hiked rates by 0.15 percent, while a 390 days to 2 years maturity deposit will fetch an interest rate of 0.10 percent over the previous one, the bank statement said.