Banks hike foreign currency deposit rates

September 17th, 2008 - 10:26 pm ICT by IANS  

Mumbai, Sep 17 (IANS) Country’s leading public sector banks State Bank of India (SBI) and Punjab National Bank (PNB) Wednesday announced hike in their interest rates on foreign currency non-resident (B) account deposits and non resident external (NRE) term deposits.SBI revised its rate on on foreign currency non-resident deposits in US dollar from 50-100 basis points across various tenures. Deposits in euro for one-two years maturity, will now fetch 5.08 percent from existing 4.58 and for British pound it will now attract 5.77 percent from 5.27 percent for the same time period.

Similarly, interest rate for NRE deposits went up by 0.5 percent across various maturities. These rates will be effective from Thursday.

PNB has revised its interest rates by 50 basis points for non-resident deposits in foreign currencies including US dollar, Euro and British Pound.

The bank also raised interest rates by 50 basis points for rupee deposits by non-residents, effective from Wednesday.

The banks’ decision comes a day after the Reserve Bank of India raised the ceiling on interest rates on non-resident deposits by 50 basis points to encourage the inflow of foreign currency deposits and to strengthen rupee.

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