State Bank of India hikes Non Resident Deposit rates

Country largest lender State Bank of India has hiked interest rates on its FCNR (B) and NRE (Rupee) deposits with effect from 17th November, 2008.

For NRE (rupee) deposits for a duration of one year to less than two years, the rate has been increased to 4.92 per cent from the earlier 4.17 per cent.

For two years to less than three years and three years to five years, the rate has been raised to 4.41 per cent from 3.66 per cent and 4.89 per cent from the earlier 4.14 per cent, respectively.

For FCNR (B) dollar-denominated deposits, the interest rate has been hiked to 4.17 per cent from 3.42 per cent and for two years and above but less than three years, the new rate is 3.66 per cent from the earlier 2.91 per cent.

For three years and above but less than four years and four years and above but less than five years, the rates have been increased to 4.14 per cent and 4.49 per cent each.

For five years duration, the new rate is 4.76 per cent, against the earlier 4.01 per cent.

SBI decision comes after the Reserve Bank of India raised the ceiling on interest rates on non-resident deposits to encourage the inflow of foreign currency deposits and to strengthen rupee in the wake of global financial crisis. More banks are expected to hike the NRI deposit rates in coming days.


It is important to note that in month of November 2008, SBI has reduced both its lending and domestic deposit rates ... Read More



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