PNB raises interest rate on NRE term deposits

December 27th, 2011 - 6:03 pm ICT by IANS  

Mumbai, Dec 27 (IANS) The Punjab National Bank (PNB), the country’s second largest public sector lender, Tuesday said it will hike interest rates on non-resident external (NRE) accounts to 9.25 percent - effective from the beginning of next year.

The bank has decided to increase the rate of interests on NRE term deposit to 9.25 percent for period ranging from 1 year to 5 years with effect from Jan 1, 2012, PNB said in a statement.

Most other lenders have also hiked interest rates on NRE deposits.

Last week, HDFC Bank hiked interest rates on NRE deposits of various maturities period up to 9 percent.

Allahabad Bank has hiked rates to 7.5 percent. IndusInd Bank has hiked rates to 9.25 percent and Yes Bank hiked rates to 9.6 percent.

The existing interest rates on term deposits of most of the banks are in the range of 3-4 percent.

Lenders have hiked rates in a bid to attract deposits from NRIs amid rising interest rates on domestic deposits.

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