ICICI Bank followed smaller rivals and increased its lending rate by 0.25 percent to 10 percent with effect from Friday. The bank also effected a similar hike in its prime lending rate, which is applicable to existing customers on floating rates, ICICI Bank said in a statement.
    
Mortgage lender HDFC increased its retail prime lending rate (RPLR) by 0.25 percent. As a result, interest on housing loans of up to Rs 30 lakh will go up to 10.40 percent from the existing 10.15 percent, HDFC said in a statement.
    
The interest rate on housing loans exceeding Rs 30 lakh will rise to 10.65 percent from Friday, it said.
    
ICICI Bank said fixed-rate customers will not be impacted by the revision and their contracted rates will remain unchanged.
    
Earlier this month, ICICI Bank raised fixed deposit rates by up to 0.75 percent across select maturities due to a series of steps taken by the Reserve Bank of India, leading to tightening of liquidity conditions.
    
The private sector bank had raised the interest rate on term deposits by 0.75 percent to 7 percent for 46-60 day maturity and to 7.75 percent for 61-289 days, according to the ICICI Bank website.

'Re slide spawns interest in NRIs to buy property back home'

The rupee's sharp decline against the dollar has generated interest in NRIs to buy property back home by reaping benefit of favourable exchange rate, according to a survey.
    
"Indian property developers are anticipating a 35 percent surge in enquiries from NRI-based purchasers as the rupee dip against the dollar last six months. The decline in rupee has increased property sales because people want to get value for their money," revealed the survey by industry body Assocham.
    
According to the survey, Bangalore emerged as the most favourite property investment destination for NRIs, followed by Chennai, Mumbai, Ahmedabad and Dehradun.
     
"With the rupee riding low against the dollar, Indian residents are looking to accelerate investment plans back home," Secretary General of Assocham D S Rawat said.
     
At present, any non-resident Indian (NRI) buying a property in India can save around 20-30 percent on his or her property value, he added.

(Agencies)

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