ICICI Bank not to hike rates now

India's largest private sector bank ICICI Bank on Wednesday decided to wait and watch before taking a call on hiking interest rates, following RBI's decision to raise provisioning of standard advances on retail and home loans.

"Our interest rates always move on the basis of impact on cost of funds," Chanda Kochhar, ICICI executive director said.

When asked on the impact on the cost of funds with a increased provisioning requirement of one per cent on standard assets, Kochhar said that provisioning did not have an impact on cost of funds but it has other impacts.

"We always do not jump to hike in lending rates. We will see the overall impact before taking a call."