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Press Release

ICICI Home Finance Launches Fixed Deposits Programme

ICICI Home Finance Company Ltd., a wholly owned subsidiary of ICICI Limited, has launched its maiden fixed deposits programme on July 25, 2001.

The interest rates being offered on these deposits are 9.85% per annum, 9.80% per annum and 9.75% per annum, payable annually, for deposits of 7 years, 5 years and 3 years respectively.

The deposit options and the interest rates being offered on these deposits are as follows:

Scheme Interest Rate (% p.a.)* for
  3 years 5 years 7 years
Cumulative Income Plan 9.75 9.80 9.85
Annual Income Plan 9.75 9.80 9.85
Semi-Annual Income Plan 9.50 9.55 9.60
Monthly Income Plan 9.30 9.35 9.40

* Subject to TDS as per the then prevailing tax laws. (Currently, no TDS on interest up to Rs. 5,000 in a financial year).

The Company has been assigned a credit rating of "CARE AAA (FD) (SO)" for its fixed deposits by CARE. Instruments carrying this rating are considered to be of the best quality, carrying negligible investment risk. This rating is issued on the credit enhancement by ICICI Limited in the form of letter of comfort stating that ICICI Home Finance Company Limited will continue to remain its subsidiary company and it will facilitate ICICI Home Finance Company Limited in procuring funds to meet its Fixed Deposit obligations.

In accordance with the Housing Finance Companies (NHB) Directions, 1989, the depositor may opt for premature withdrawal of his deposits after 3 months from the date of deposit.

An individual or a HUF may also avail of a loan against his fixed deposits, from the Company, after 3 months from the date of deposit. This loan may be for up to 75% of the deposit amount, subject to such terms as may be specified by the Company from time to time.

The tax benefits available on these deposits are as follows:

  • No Tax Deducted at Source (TDS) on interest up to Rs. 5,000/-
  • Deduction under Section 80L of the Income-tax Act, 1961 available for interest up to Rs. 9,000/-

These fixed deposits would be accepted through the 95 ICICI Centres situated across the country and through other brokers and agents. For the convenience of investors, ICICI Home Finance Company Limited proposes to offer over the counter issuance of Fixed Deposit Receipts at select ICICI Centres.

ICICI Home Finance Company Limited was incorporated in February 1999. ICICI Home Loans are now available in 60 cities/towns across the country. Loans are offered for purchase of new homes, purchase of old homes and Home Improvement. Besides, ICICI Home Finance Company Limited has also launched loans for commercial property and is offering loans against existing property. The loans are offered for tenors upto 30 years. In the last completed year ICICI Home Finance has sanctioned loans amounting to Rs. 1,388 crore and disbursed Rs. 677 crore.

Except for the historical information contained herein, statements in this release which contain words or phrases such as "will", "aim", "will likely result", "believe", "expect", "will continue", "anticipate", "estimate", "intend", "plan", "contemplate", "seek to", "future", "objective", "goal", "project", "should", "will pursue" and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement the Fixed Deposits Programme of ICICI Home Finance Company Limited, our growth and expansion, the adequacy of our allowance for credit losses, technological changes, investment income, cash flow projections, our exposure to market risks as well as other risks detailed in the reports filed by ICICI Limited with the Securities and Exchange Commission of the United States. ICICI undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

For further press queries, please contact Madhvendra Das at (+9122) - 653 6124 or e-mail: das@icici.com.