New Delhi: India's largest private sector bank, ICICI has hiked its lending rates by half a per cent.

But the bad news is only for people who are taking fresh loans. Old customers have been spared.

The bank has also raised deposit rates by half a per cent.

A rising interest rate regime seems here to stay at least for the time being.

ICICI Bank Executive Director S VAidyanathan said he does not rule further hikes in the near future.

The hike is in response to the recent hike in the Cash Reserve ratio by the RBI.

ICICI Bank had increased the home loan rate by 1 per cent on February 9. That hike also made applicable to only to new customers.