The Hindu Business Line : With days to go for redemption of RIBs — Banks fix rates on FC deposits at offshore units

BANKS with offshore banking units (OBU) in the country have announced interest rates to be offered on the foreign currency deposit to be held in these units.

The interest rates being offered by State Bank of India on its deposit scheme, is around 34-55 basis points above Libor/Swap, while Union Bank deposit rates are around 15-30 basis points above Libor/Swap.

SBI's deposit scheme for NRIs, `Pravasi Samriddhi' will now be available at its OBUs at Seepz (Mumbai), Bahrain, Singapore and Nassau, and offers a fixed rate (including cumulative option) or floating rate option. The deposit will be denominated in US dollar, Pound Sterling and Euro with stipulated minimum balance of 5,000 in each currency, according to a release.

Pravasi Samriddhi deposit will be offered for a period of one, two and three years. The interest rates offered on this scheme will be linked to applicable Libor/Swap rates.

In US dollars, interest rates was up to 1.67 per cent for one year, 2.37 per cent for two years and 3.05 per cent for three years based on Wednesday's USD Libor/Swap rates depending upon the amount of deposit, the release said.

SBI has retained the option to refund the deposit at the end of 18 months in respect of deposits having tenure of three years. The Pravasi Samriddhi deposit comes with a loan on tap facility, which envisages sanction of loan up to 90 per cent of the deposit providing liquidity to NRIs to meet emergent financial requirements.

The Union Bank of India's interest rates on deposit products from their OBUS at SEEPZ Mumbai for maturities from three months to three years, is fixed at 15-30 basis points above Libor depending on the tenor and value of the deposit. The bank also offers fixed rate product `Union Advantage' and floating interest rate product `Union Dollar' to the customers, said a release.

Meanwhile, the Punjab National Bank will be offering 10-100 basis points above Libor/Swap for dollar deposits of up to $50,000 ranging in maturities between three months and three years. The bank launched its OBU in SEEPZ, Mumbai, on Wednesday and has plans to set up another one in Noida, Delhi, shortly.

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