Our Bureau

Mumbai, March 29

Bank of Baroda and HDFC Bank are among the first to raise interest rates on FCNR deposits after the Reserve Bank of India increased the interest rate ceiling by 25 basis points. Now banks can offer up to LIBOR/ Swap rate as against the earlier ceiling of LIBOR minus 25 basis points.

HDFC Bank announced a 25 bps hike in rates on FCNR deposits in US dollar, pound, euro, yen, Australian dollar and Canadian dollar currencies. The revised rates on US dollar FCNR deposits are 5.15 per cent (4.9 per cent) for 1-2 years, for 2-3 years it is 5.13 per cent (4.88 per cent) and for 3-5 years it is 5.11 per cent (4.86 per cent per cent), the bank said in a press release today.

Bank of Baroda increased the rate on dollar deposits of one year to less than two years to 5.15 per cent (4.9 per cent), on deposits of two years to less than three years to 5.13 per cent (4.88 per cent), on deposits of three years to less than four years to 5.11 per cent (4.86 per cent), on deposits of four years to less than five years to 5.11 per cent (4.86 per cent), the bank said in an announcement to the Bombay Stock Exchange.

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(This article was published in the Business Line print edition dated March 30, 2006)
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