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ICICI to increase home loan rates

Auto loans interest rates may also go up by 25 - 50 bps, while personal loan, credit card rates may not be hiked.

india Updated: Feb 08, 2006 17:55 IST
Press Trust of India
Press Trust of India

India's largest private lender ICICI Bank on Tuesday said that it will increase its home loan rates by 50 basis points "anytime before the end of the current fiscal."

Speaking to reporters on the sidelines of a conference in Mumbai, bank's retail banking head V Vaidyanathan said interest rates on auto loans may also go up between 25 to 50 basis points, while rates on personal loan and credit card may not be hiked.

"Liquidity condition is tight. There is a clear pressure on liquidity. We are evaluating the cost of fund," he said, adding that the bank would have no alternative but to pass the rising cost of deposits to customers.

Following the hike in repo and reverse repo rates by RBI in its third quarter review of the monetary policy, HDFC Bank increased home loan rates. IDBI Ltd followed the move.

While HDFC Bank increased home loan rates by 50 basis points, IDBI Ltd increased lending rates by 25 basis points.

First Published: Feb 08, 2006 14:51 IST