Interest rates on NRI deposits have been raised by ICICI Bank with effect from July1, 2007. As per the changes, NRE fixed deposits for one-year have increased by 0.16%, to touch 5.43%. One-year FCNR deposits will fetch 4.68% per annum on US dollars. FCNR accounts holding the British pound will attract 0.27% higher interest, while accounts holding Canadian dollars will get 0.16% more interest.
Floating home loans below Rs.20 lakh taken from ICICI Bank will be lower by 0.5%, sources informed the media yesterday. Loans below Rs.20 lakh are under the priority sector, and with the RBI easing the risk weightage on these loans, ICICI has been able to pass on the benefit to the customer.
Effectively, the lowering translates to a rate of 11.5%, at par with other public sector lenders. Floating and fixed loans above Rs. 20 lakh continue to be 12 and 14% respectively.
Meanwhile, ICICI Prudential Asset Management has decided to set up an ICICI Prudential Real Estate Fund, a close ended fund which will invest primarily in companies associated with real estate. Investors can buy units of Rs.10 each, with a minimum purchase of 500 units under the retail option. Institutional investors would be required to purchase units worth Rs.5 crore. 70% of the Fundís capital will be invested in debt instruments and the balance in equity and equity related securities.