Karnataka Bank revises NRE rates

Mangalore-based Karnataka Bank Limited has increased interest rates on its non resident (External) rupee deposit (NRE) scheme with effect from June 1, 2006.

The rate of interest for deposits of one year to less than two years has been increased from 6.33 per cent to 6.43 per cent, two years to less than three years from 6.34 to 6.43 and for three years and up to five years from 6.35 to 6.45 per cent.

The changes in the interest rates will also apply to repatriable NRE deposits renewed after their present maturity period. The Bank's business turnover has crossed Rs 21,000 crore mark and it earned a net profit of Rs 176.03 core as on March 31, 2006.

The Bank is eyeing a business turnover of Rs 25,000 crore for the year 2006-07 with the number of branches to reach 415 during the current fiscal.