BoB, HDFC Bank hike FCNR rates

Bank of Baroda (BoB) and HDFC Bank today raised NRI deposits rates, a day after the Reserve Bank of India (RBI) increased the ceiling on FCNR-B deposits by 25 basis points to international benchmark Libor.

Managing committee members of Indian Banks' Association (IBA) led by State Bank of India (SBI) chairman, A K Purwar, had sought deregulation of interest rates on NRI deposits during a meeting with RBI governor Y V Reddy.

The bankers had argued that with the increase in rates across the globe, the returns offered on foreign currency deposits in India had become unattractive.

Central Bank of India has increased interest rates on domestic term deposits by 25 basis points for maturities ranging from 46 days to less than 5 years and by 50 basis points for maturities of five years and above.

BoB has raised FCNR(B) rates with effect from April 1. BoB has hiked rates on dollar deposits for one year to less than two year to 5.15 per cent from 4.90 per cent, for two year to less than three years to 5.13 from 4.88 per cent and for three years to five years to 5.11 per cent from 4.86 per cent.

HDFC Bank has increased interest rates on dollar deposits to 5.15 per cent from 4.90 per cent for one to two years, to 5.13 per cent from 4.88 per cent for two to three years and to 5.11 per cent from 4.86 per cent for three to five years.