Banks increase foreign currency deposit rates

New Delhi, July 13

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SBI, ICICI Bank and IDFC First Bank have raised interest rates on foreign currency non-resident deposits in response to the RBI’s relaxation last week to shore up forex inflows. The country’s largest private sector lender HDFC Bank has also revised the rates on foreign currency (non-resident) deposits.

However, it clarified that the revision is not in response to the latest RBI move and it will take a call on revising the rates further going forward.

The largest public sector lender SBI has revised the foreign currency non-resident deposits (FCNR) rates on US dollar in the range of 2.85-3.25% per annum on various tenure US dollar deposits with effect from July 10.

SBI has hiked the rate on one-year tenure FCNR USD deposits to 2.85 from 1.80% earlier. For deposits of 3-4 years and 5 years, it has been hiked to 3.10% and 3.25%, respectively. The previous rates were 2.30% and 2.45%, respectively.

ICICI Bank has revised upwards FCNR by 0.15% on deposits of higher than and equal to $350,000 for 12-24 months tenure to 3.50%. The new rate has come into effect from July 13.

HDFC Bank revised FCNR on USD deposits for tenure of 1 year to less than 2 years at 3.35% with effect from July 9. However, a bank official said these rate revisions were not in response to the latest RBI move and it is studying the impact of the relaxation in foreign currency deposits. — PTI

Move to shore up forex inflows

SBI has hiked the rate on one-year tenure FCNR USD deposits to 2.85 from 1.80% earlier. For deposits of 3-4 years and 5 years, it has been hiked to 3.10% and 3.25%, respectively. The previous rates were 2.30% and 2.45%, respectively