Rates of interest within the system are on an upward trajectory amid a liquidity squeeze and two fee hikes by the RBI, with a slew of lenders saying critiques. Usually, hikes in lending charges are preceded by deposit fee hikes.
ICICI Financial institution’s head of retail liabilities group, Pranav Mishra, stated the lender feels prevailing volatility within the monetary market will result in a renewed curiosity amongst clients to put money into mounted deposits.
The financial institution will supply 7.50 p.c curiosity on deposits below Rs 1 crore for a tenor of above two years as much as three years, a hike of 0.25 p.c, an official assertion stated.
The hikes are efficient Thursday.
The financial institution has additionally upped its providing by 0.25 p.c in different buckets together with 46-60 days, 61-90 days, 91-120 days and 121-184 days.
Within the one yr to 389 days bucket, it has hiked charges by 0.15 p.c, whereas a 390 days to 2 years maturity deposit will fetch an rate of interest of 0.10 p.c over the earlier one, the financial institution assertion stated.