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 the 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 yesterday. The bankers had argued that with increase in rates across the globe, the returns offered on foreign currency deposits in India had become unattractive.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% from 4.90%, for two year to less than three years to 5.13% from 4.88%, and for three years to five years to 5.11% from 4.86%.HDFC Bank has increased interst rates on dollar deposits to 5.15% from 4.90%for one to two years, to 5.13% from 4.88% for two to three years and to 5.11% from 4.86% for three to five years.Central Bank of India increased interest rates on domestic term depositsby 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.
