<p>ICICI Bank hiked deposit rates across various maturities by up to 75 basis points (bps) with immediate effect, signalling a possible hike in lending rates as well. “We have increased our deposit rates effective today across various maturities. The increase is more or less by 25 bps. In some tenors, the hike is by 50 to 75 bps,” ICICI Bank Managing Director and CEO Chanda Kochhar said. <br /><br />Corporation Bank revised rate of interest on term Deposits ranging from 25 basis points (bps) to 50 bps for different maturity bands with effect from August 2, 2010. While PNB has hiked the term deposit rates by 75 bps, Union Bank has done it by 25 to 100 bps for various maturities. The hike in the deposit rate was to compensate depositors against the inflation impact, the banks said. <br /><br />In the case of Corporation Bank, for example, the rate of interest for deposits between 2 years to less than 33 months will be 7.25 per cent. In the case of PNB, the rate hike is applicable for deposits of up to Rs 10 crore. Currently, it is offering the highest interest rate at 7.50 per cent a year for deposits of 5 year tenure and above. <br /><br />Union Bank said the increase in interest rate on term deposits for one year tenure is 25 basis points from 6.50 to 6.75 per cent, while for short term deposits of 91 days to less than 6 months and then 6 to less than 9 months, interest rates have been increased by 50 to 100 basis points from 3.5 to 4.5 and 4.5 to 5 per cent respectively.<br />In order to offset the impact of the above changes, all three PSU banks have also increased their BPLR, while retaining its Base Rate intact. <br /><br />Corporation Bank has raised it by 50 bps from 12 to 12.50 per cent, Union Bank hiked it by 50 basis points from 11.75 to 12.25 per cent, while PNB hiked BPLR by 75 bps from 11 to 11.75 per cent. PNB said it has been offering most competitive BPLR at 11 per cent since May 1, 2009 and also after the latest hike, it will remain competitive with one of the lowest BPLR in the industry.<br /><br />Even as banks implemented the Base Rate System with effect from July 1, the current increase in BPLR would not adversely impact the customer interest as the new customers will come under Base Rate regime. <br /><br />Also, the existing borrowers have an option of switching over to the Base Rate whenever they desire and as such, the impact of increased BPLR on the borrowers is expected to be minimal.<br /></p>
<p>ICICI Bank hiked deposit rates across various maturities by up to 75 basis points (bps) with immediate effect, signalling a possible hike in lending rates as well. “We have increased our deposit rates effective today across various maturities. The increase is more or less by 25 bps. In some tenors, the hike is by 50 to 75 bps,” ICICI Bank Managing Director and CEO Chanda Kochhar said. <br /><br />Corporation Bank revised rate of interest on term Deposits ranging from 25 basis points (bps) to 50 bps for different maturity bands with effect from August 2, 2010. While PNB has hiked the term deposit rates by 75 bps, Union Bank has done it by 25 to 100 bps for various maturities. The hike in the deposit rate was to compensate depositors against the inflation impact, the banks said. <br /><br />In the case of Corporation Bank, for example, the rate of interest for deposits between 2 years to less than 33 months will be 7.25 per cent. In the case of PNB, the rate hike is applicable for deposits of up to Rs 10 crore. Currently, it is offering the highest interest rate at 7.50 per cent a year for deposits of 5 year tenure and above. <br /><br />Union Bank said the increase in interest rate on term deposits for one year tenure is 25 basis points from 6.50 to 6.75 per cent, while for short term deposits of 91 days to less than 6 months and then 6 to less than 9 months, interest rates have been increased by 50 to 100 basis points from 3.5 to 4.5 and 4.5 to 5 per cent respectively.<br />In order to offset the impact of the above changes, all three PSU banks have also increased their BPLR, while retaining its Base Rate intact. <br /><br />Corporation Bank has raised it by 50 bps from 12 to 12.50 per cent, Union Bank hiked it by 50 basis points from 11.75 to 12.25 per cent, while PNB hiked BPLR by 75 bps from 11 to 11.75 per cent. PNB said it has been offering most competitive BPLR at 11 per cent since May 1, 2009 and also after the latest hike, it will remain competitive with one of the lowest BPLR in the industry.<br /><br />Even as banks implemented the Base Rate System with effect from July 1, the current increase in BPLR would not adversely impact the customer interest as the new customers will come under Base Rate regime. <br /><br />Also, the existing borrowers have an option of switching over to the Base Rate whenever they desire and as such, the impact of increased BPLR on the borrowers is expected to be minimal.<br /></p>
