ICICI Bank, HDFC raise interest rates 75 bps

The country’s largest private bank ICICI Bank and the largest home mortgage company HDFC today announced a 75 basis point increase in lending rates, which will raise borrowing costs sharply for home, personal and corporate loans.

Two days after the Reserve Bank of India announced a 50-basis point increase in the repo rate, or the rate at which it lends to banks, and a 25 basis point increase in the cash reserve ratio, the proportion of deposits banks must set aside, the only good news came in the form of a 75 to 100 basis point rise in fixed deposit rates by ICICI Bank.