mumbai in a clear signal of a rising interest rate regime countrys largest private sector lender icici bank today said it has hiked its auto loan rates by up to 05 per cent and withdrawn its 825 per cent special homeloan scheme watchauto loans rack rates have been raised by 02505 per cent depending on segment and tenor with effect from march 5 an icici bank spokesperson said though the bank did not give any reason for the rate hike industry experts said that the rate increase was largely prompted by signals communicated by the reserve bank in its last monetary policy review with a view to suck out excess liquidity from the system the rbi hiked the cash reserve ratio or the amount banks have to keep with rbi for zero interest by 075 per cent to 575 per cent absorbing rs 3600crore from the system following the hike interest rates for new auto loans will now be in the range of 97511 per cent icici bank also withdrew its special homeloan scheme under which it offered homeloans for 825 per cent fixed rate for two years effective from march 1 the spokesperson added on homeloans icici bank is currently offering homeloans for up to rs 30lakh at 875 per cent loans between rs 30lakh to rs 50lakh at 9 per cent and those above rs 50lakh at 950 per cent another private sector lender kotak mahindra bank and the groups carloan financing arm also announced hikes in their home and carloan rates respectively today watchwhile kotak mahindra bank has hiked its homeloan rates by 02505 per cent with effect from february 18 kotak mahindra prime which is the dedicated car financing arm of group has hiked its loan rates by 05075 per cent we decided to hike the interest rates for homeloans by 02505 per cent this is primarily to align lending rates in line with the cost of deposits kotak mahindra banks head of retail assets kamalesh rao said the banks homeloan portfolio grew by 50 per cent in the current year he said kotak mahindra primes chief executive officer sumit bali said the hike in lending rates will come in to effect from march 8 we are hiking the lending rates as the cost of funds have gone up by up to 075 per cent we have to pass on this additional cost to customers which we didnt do last month bali said kmp has a a total loanbook of around rs 6500crore which grew by around 35 per cent in the current financial year moving ahead the company expects a loan growth in the range of 1520 per cent bali said