FCNR deposit rates up

Mumbai: Atleast four leading banks today hiked their interest rates in foreign currency deposits, apparently with a view to mop up more such deposits in the face of tight liquidity conditions.
These banks are the State Bank of India, Bank of Baroda, HDFC Bank and Union Bank of India, according to a PTI report.

SBI today said its foreign currency non-resident (B) account deposits in US dollar, having a maturity of 1-2 years, will now attract a rate of 2.96 per cent as against 2.46 per cent earlier.
The increase will be effective from tomorrow. (Sept.19, 2008)

Rate for deposits having a 2-3 years, 3-4 years and 4-5 years tenure have been hiked to 3.06 per cent (2.56), 3.38 per cent (2.88) and 3.6 per cent (3.10) respectively, SBI said. Deposits in Euro and Pound in the 1-2 years maturity, will now attract 5.08 per cent (4.58) and 5.77 per cent (5.27) respectively.

Similarly, interest rate for NRE deposits having a tenure of 1-2 years has been increased to 3.71 per cent (3.21). NRE deposits in 2-3 years and 3-5 years maturities have also been upped to 3.81 per cent (3.31) and 4.13 per cent (3.63) respectively, SBI said.

Other leading public sector lenders Bank of Baroda, HDFC Bank and Union Bank of India also announced similar hikes in their FCNR(B) and NRE deposits with immediate effect. HDFC customers will now get 2.95 per cent (2.45) for their FCNR(B) deposits in US Dollar in 1-2 years tenure and 3.05 per cent (2.55) in the 2-3 year maturity, the report said.

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