ICICI Bank has announced an increase of between 0.25-0.75 per cent in deposit and lending rates. The move is in line with market trends, with market interest rates across various maturities increasing during the current financial year.

Since March 31, 2004, the 91-day treasury bill cut-off yield has moved up by about 1.20 per cent and the yield on 10-year Government of India securities has moved up by about 2.00 per cent.

The Reserve Bank of India increased the cash reserve ratio by 0.50 per cent in September 2004 and followed this monetary tightening measure with an increase of 0.25 per cent in the reverse repo rate, from 4.50 per cent to 4.75 per cent.

Domestic term deposits up to Rs 15 lakh (general category):

Maturity	New rate
15 days & above up to 45 days	3.00%
46 days & above up to 60 days	3.25%
61 days & above up to 90 days	3.50%
91 days & above up to 180 days	4.50%
181 days & above up to 1 year	5.00%
More than 1 year up to 3 years	5.50%
More than 3 years up to 5 years	5.75%
More than 5 years up to 10 years	6.25%

ICICI Bank has increased interest rates on retail domestic term deposits across select tenors by 0.25 per cent to 0.75 per cent.

The increase in interest rates will be applicable only to renewals and fresh deposits on or after November 17, 2004.

The Floating Reference Rate, which is used for determining the rate of interest for adjustable (floating) rate home loans, has been increased by 0.50 per cent.

The increase in FRR will be applicable to new customers from November 17, 2004. For existing customers, the increase in FRR by 0.50 per cent will be effective from January 1, 2005, in line with the bank's policy of resetting rates on a quarterly basis.

Interest rates on fixed rate home loans have been increased by 0.75 per cent to 8.50 per cent from the current level of 7.75 per cent with effect from November 17, 2004.

The existing fixed rate home loan customers will not be impacted by this increase and their contracted rates will remain unchanged.

ICICI Bank has also announced an increase of 0.50 per cent in the ICICI Bank Benchmark Advance Rate (I-BAR), which is used for determining the rate of interest on new loans and advances (other than the categories of loans to individuals and specific agencies as advised by Indian Banks' Association). Accordingly, I-BAR will be 10.50 per cent with effect from November 17, 2004.