Date:06/05/2006 URL: http://www.thehindubusinessline.com/2006/05/06/stories/2006050604230100.htm

Back ICICI Bank home loans costlier

Our Bureau

Mumbai , May 5

ICICI Bank has announced an increase in home loan interest rates by 0.5 percentage point.

The increase in the floating and fixed interest rates for home loans will be effective from May 8.

This move will increase the interest rates on floating home loans to 9 per cent from 8.5 per cent. The interest rate on fixed rate home loans will also go up from 9.75 to 10.25 per cent.

ICICI Bank said the floating rate hike for existing customers would be effective from July 1, 2006 "in line with the bank's policy of resetting rates on a quarterly basis''. The existing fixed rate home loan customers will, however, not be impacted by this increase and their contracted rates will remain unchanged, ICICI Bank said in a news release.

Shares of ICICI Bank fell by Rs 21.70 to Rs 638.60 in Friday's trade on BSE.