Mumbai
Country’s second largest private sector lender by assets ICICI Bank today hiked retail term deposit interest rates by up to 0.25% 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% interest on deposits under Rs 1 crore for a tenor of above two years up to three years, a hike of 0.25%, an official statement said. The hikes are effective Thursday. The bank has also increased its offering by 0.25% in other buckets.