In a bid to attract more fixed deposits, private-sector lender ICICI Bank on Friday increased interest rates on such deposits by 0.25 to 0.75 percentage points.

The bank increased interest rate on fixed deposits of 46 to 60 days tenure by 0.75 percentage points to 7 per cent, while fixed deposits of tenure of 61 to 289 days got increased by 0.75 percentage points to 7.75 per cent.

Interest rate of fixed deposits of tenure of one year to 389 days was increased by 0.50 percentage points to 8 per cent. Five year fixed deposit received an increase of just 0.25 percentage points in interest rate to 8.5 per cent.

As obvious from the above mentioned figures, short term deposits received bigger increases in interest rates.

India's leading private sector lender, however, didn't make any change in its benchmark lending rate or base rate, which is still at 9.75 per cent.

Earlier on Wednesday this week, government-run IDBI Bank announced a merger of some of the maturity buckets and a hike of up to 1.5 per cent in interest rate on fixed deposits of certain maturities.

The banks increased short-term fixed deposit interest rates following a slew of measures taken by the Reserve Bank of India to tighten the liquidity to tackle inflation.