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05-10-2012, 09:32 AM #1
ICICI, IOB raise foreign currency FD rates
As rupee plummeted to all-time low at close on Wednesday, two leading lenders ICICI Bank and IOB hiked interest rates by up to 1.75 per cent on foreign currency fixed deposits to attract dollar funds from NRIs.
Other major banks like State Bank of India, Punjab National Bank and Oriental Bank of Commerce have already raised interest rate on such deposits to attract fund inflows from Non-resident Indians (NRIs).
Meanwhile, the rupee lost a hefty 72 paise to close at all-time low of 53.84 against dollar due to sustained demand for the US currency.
For FCNR (B) dollar-denominated deposit, interest rate has been increased by 0.75 per cent to 3.05 per cent from 2.30 per cent for a maturity of 1-2 years, ICICI Bank said in a statement.
Similarly, for maturity of 2-3 years, the rate has been hiked to 2.56 per cent from the earlier 1.81 per cent, the banks said in separate statements.
Interest rate has been increased by 1.75 per cent for fixed deposits between 3-4 years to 3.67 per cent from earlier 1.92 per cent.
Rate of interest on US dollar deposits, for a maturity of five years, has also been revised upwards by 1.75 per cent to 4.11 per cent, the bank said.