ICICI Bank reduces deposit rates by 0.25-0.50%

MUMBAI: ICICI Bank on Tuesday reduced interest rates on deposits of value less than Rs 15 lakh by 25-50 basis points for select maturities upto two years, a day after the country's largest lender SBI reduced its deposit rates.

The revised interest rate for tenors 181-365 days will be 6.25 per cent per annum as against 6.50 per cent at present, ICICI Bank said in a release.

Similarly, the revised interest rate for tenors 366 days-upto 2 years excluding special deposit schemes will be 6.25 per cent as compared to 6.75 per cent, it said.

The new rates would be effective from August 9, it said adding the interest rates on special deposit schemes remained unchanged.

The revision comes barely a week after Reserve Bank hiked the amount of depositors' money commercial banks need to park with the central bank by half a percentage point.

Read more in The Economic Times

Retail loans boost bank profits

The banking sector witnessed another robust quarter during the period ended June 2007, with their growth in bottom lines rising to a 12-quarter high at 51.80 per cent.

A rise in commercial and retail lending rates, growth in fee-based income and lower provisioning helped banks boost their profits.

The numbers are based on the first quarter results for June 2007 declared by 37 banks (22 PSU and 15 private banks). STRONG QUARTERS (Rs in crore) Quarter ended June % chg 2006 2007 Interest Income 43,569 59,743 37.12 Other Income 5,039 7,173 42.34 Net Interest Income 17,173 19,615 14.22 Interest Expended 26,396 40,128 52.03 Net Profit 4,593 6,972 51.80 Prov & Con 3,363 2,641 -21.47

Interest income of these banks increased 37.12 per cent, while other income was up by 42.3 per cent. Interest cost on borrowings and deposits went up sharply by 52.03 per cent, while provisioning declined by 21.47 per cent. Net interest income (NII) of the overall banking sector rose by 14.22 per cent to Rs 19,614.93 crore fuelled by higher interest on advances. Read more in Business Standard